UNIVERSITY OF ZIMBABWE

FACULTY OF COMMERCE

MASTERS IN BUSINESS ADMINISTRATION

A COMPARATIVE ANALYSIS OF THE IMPACT OF INFORMATION TECHNOLOGY

ON HUMAN CAPITAL MANAGEMENT IN PARASTATALS IN ZIMBABWE: A CASE
STUDY OF ZETDC, ZIMRA AND TELONE

BY F. MAKWINJA

Reg. Number: R053872W

A DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENTS FOR THE MASTERS DEGREE IN BUSINESS
ADMINISTRATION (M.B.A.)

July 2015

GRADUATE SCHOOL OF MANAGEMENT

UNIVERSITY OF ZIMBABWE

Supervisor: Dr. A. Z. Zinyemba

i
 Dedication

I dedicate this project to my mom and dad. I am forever thankful for doing your best for me so
that I reach greater heights.

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iii
 Acknowledgements

I express my gratitude towards my supervisor Dr. A. Z. Zinyemba for her guidance and
continuous support throughout the project.

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 Abstract

The study explored the impact of information technology on human capital management in
parastatals in Zimbabwe using a comparative analysis of the case study of ZETDC, ZIMRA and
TelOne. Quantitative research methods were employed and the sample included 12 managers, 60
human capital department staff, 69 information technology department staff and 259 other staff
members from ZETDC, ZIMRA and TelOne. The main data collection instrument for this study
was the questionnaire. All the three parastatals concur that their organizations have not benefitted
significantly from HCIS. Moreover, even though ZETDC, ZIMRA and TelOne concur that their
organizations have not benefitted significantly from HCIS they still acknowledged that there
were some benefits of HCIS to their organisations. The major benefits were enhanced security of
data, improved communication and improved decision making, help in achieving company
objectives as well as providing a competitive advantage. The major benefit of HCIS at ZETDC
was improved decision making whilst at ZIMRA it was improved security of data and at TelOne
it was competitive advantage. The key success factors to the implementation and effective use of
HCIS were not being practiced at the three parastatals. These were top management support,
adequate training, support from human capital department, user involvement participation and
good communication. The key success factor lacking at ZIMRA was adequate training for HCIS
users, whilst at ZETDC it was user involvement participation and TelOne were mainly concerned
with top management support. Furthermore, there were also factors hindering the successful
implementation and use of HCIS at the parastatals. These factors were failure to attract and retain
HCIS expertise, resistance to change and fear of the unknown, setting unrealistic objectives, lack
of senior management commitment, lack of proper implementation strategy, lack of
understanding of HCIS among users as well as conflict in priorities between departments. The
main challenge at TelOne was the organisation’s failure to attract and retain HCIS expertise
whilst at ZETDC it was low key user investment during HCIS implementation and at ZIMRA
their main challenge was the lack of understanding of HCIS among users. However, the study
established that the successful implementation of HCIS at ZETDC; ZIMRA and TelOne has
significant impact to HCM in the organisations. The study recommends that the parastatals
implement and practice all the key success factors of HCIS implementation so as to ensure that
the implementation and use of HCIS is successful.

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Table of Contents
Dedication ........................................................................................................................................ i
Declaration ..................................................................................... Error! Bookmark not defined.
Acknowledgements ........................................................................................................................ iv
Abstract ........................................................................................................................................... v
List of Figures .............................................................................................................................. viii
List of Tables .................................................................................................................................. ix
List of Tables ................................................................................................................................... x
List of Acronyms............................................................................................................................ xi
CHAPTER 1 ................................................................................................................................... 1
INTRODUCTION AND BACKGROUND................................................................................ 1
1.1 Introduction ....................................................................................................................... 1
1.2 Background of the study ................................................................................................... 1
1.3 Problem statement ............................................................................................................. 7
1.4 Purpose of Study ............................................................................................................... 7
1.5 Research Questions ........................................................................................................... 8
1.6 Hypothesis......................................................................................................................... 8
1.7 Significance of the study................................................................................................... 9
1.8 Scope of the study ............................................................................................................. 9
1.9 Assumptions of the study ................................................................................................ 10
1.10 Structure of the dissertation ...........................................................................................11
1.11 Chapter summary ...........................................................................................................11
CHAPTER 2 ................................................................................................................................. 12
LITERATURE REVIEW .......................................................................................................... 12
2.1 Introduction ..................................................................................................................... 12
2.2 Human Capital Management .......................................................................................... 12
2.3 Human Capital Information System ............................................................................... 13
2.4 Critical success factors in the implementation of HRIS ................................................. 16
2.5 Reasons why staff revert to manual systems .................................................................. 20
2.6 Factors that hinder the implementation of HCIS ............................................................ 23
2.7 Intermediate benefits of HCIS ........................................................................................ 25
2.8 Advantages and Disadvantages of implementing HCIS ................................................. 28
2.9 Critical failure factors of HCIS implementation ............................................................. 29
2.10 Model for HCIS Adoption ............................................................................................ 31
2.11 Empirical Literature ..................................................................................................... 37
2.12 Knowledge gaps ............................................................................................................ 39
2.13 Conceptual framework .................................................................................................. 42
2.14 Chapter Summary ......................................................................................................... 42
CHAPTER THREE ...................................................................................................................... 45
RESEARCH METHODOLOGY.............................................................................................. 45
3.1 Introduction ..................................................................................................................... 45
3.2 Research design .............................................................................................................. 45
3.3 Population ....................................................................................................................... 48
3.4 Data sources .................................................................................................................... 50
3.5 Data collection instruments............................................................................................. 51
3.6 Data collection procedure and administration ................................................................ 52

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 3.7 Data presentation and analysis techniques ...................................................................... 53
3.8 Credibility analysis ......................................................................................................... 54
3.9 Limitations of the study .................................................................................................. 55
3.10 Issues of ethical concern ............................................................................................... 55
3.11 Chapter Summary ......................................................................................................... 55
CHAPTER 4 ................................................................................................................................. 56
DATA, PRESENTATION AND INTERPRETATION ............................................................. 56
4.1 Introduction ..................................................................................................................... 56
4.2 Response rate .................................................................................................................. 56
4.3 Knowledge of HCIS ........................................................................................................ 58
4.4 Whether HCIS has got an impact on HCM at ZETDC, ZIMRA and TelOne................. 59
4.5 Whether ZETDC, ZIMRA and TelOne have benefitted significantly from HCIS ......... 60
4.6 Benefits of HCIS ............................................................................................................. 61
4.7 Key success factors in the implementation of HCIS ...................................................... 65
4.8 Factors hindering successful implementation of HCIS in the organization.................... 69
4.9 Normality test.................................................................................................................. 72
4.10 Non-parametric correlation test .................................................................................... 73
4.11 Regression Analysis ...................................................................................................... 74
4.12 Discussion ..................................................................................................................... 76
4.13 Conclusion .................................................................................................................... 79
CHAPTER 5 ................................................................................................................................. 80
DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS .......................................... 80
5.1 Introduction ..................................................................................................................... 80
5.2 Summary of findings....................................................................................................... 80
5.3 Hypothesis testing ........................................................................................................... 83
5.4 Recommendations ........................................................................................................... 84
5.5 Limitations and Areas for further study .......................................................................... 85
APPENDICES .............................................................................................................................. 86
Appendix A: References ........................................................................................................... 86
Appendix B: Questionnaire cover letter ................................................................................... 96
Appendix C: Questionnaire....................................................................................................... 97
Appendix D: Consent Letters.................................................................................................... 99

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 List of Figures

Figure Page

2.1 Integrated HCIS adoption intention model 32

2.2 Conceptual framework 42
4.1 Length of service at organisations 57
4.2 Whether respondents knew about HCIS 58
4.3 Benefits of HCIS 61
4.4 How the organisations rated the benefit of competitive advantage 63
4.5 How the organisations rated the benefit of improved security of data 64
4.6 Whether these key success factors were there at ZETDC, ZIMRA and TelOne 65

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 List of Tables

Table Page
1.1 Brief background information on ZETDC, ZIMRA & TelOne 2
1.2 People and systems risks that could hinder successful adoption of HCM 6
2.1 HCIS scoreboard 27
2.2 Critical failure factors of ERP implementation 30
2.3 Knowledge gaps from the author 40
2.4 Knowledge gap for models 42
3.1 Population and sample size for the study 49
3.2 Reliability statistics 54
4.1 Response rate 56
4.2 Whether respondents knew about HCIS 58
4.3 HCIS impact on HCM Cross-tabulation 59
4.4 Benefited from HCIS Cross-tabulation 60
4.5 Communication Cross-tabulation 62
4.6 Helps achieve company objectives Cross-tabulation 62
4.7 Improved decision making Cross-tabulation 64
4.8 How respondents rated whether there was top management support in HCIS
implementation 66
4.9 Top management support Cross-tabulation 67
4.10 Adequately trained Cross-tabulation 68
4.11 User involvement participation Cross-tabulation 68
4.12 Factors hindering successful implementation of HCIS at ZETDC, ZIMRA
and TelOne 69
4.13 Failure to attract and retain HCIS expertise Cross tabulation 70
4.14 Low key user involvement during HCIS implementation
Cross tabulation 71
4.15 Lack of understanding of HCIS among users Cross-tabulation 72
4.16 Normality tests 73

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 List of Tables

Table Page
4.17 Correlations 73
4.18 Model Summary 74
4.19 ANOVA 74
4.20 Coefficients 75

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 List of Acronyms

ERP Enterprise Resource Planning

HC Human Capital
HCD Human Capital Department
HCIS Human Capital Information System
HCM Human Capital Management
HR Human Resources
HRM Human Resources Management
IT Information Technology
SAP Systems Applications and Products
ZESA Zimbabwe Electricity Supply Authority
ZETDC Zimbabwe Electricity Transmission and Distribution Company
ZIMRA Zimbabwe Revenue Authority

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 CHAPTER 1

INTRODUCTION AND BACKGROUND

1.1 Introduction
Information technology (IT) has become an indispensable part of the business world, while
globally human capital management (HCM) has equally been affected in a number of ways
through the adoption and application of information technology. Despite the considerable growth
in the use of information technology in HCM, the level of impact is still under-researched. Using
descriptive statistics, this study seeks to harness the overall and generalized impact of IT on
HCM at three parastatals in Zimbabwe, namely Zimbabwe Electricity Transmission and
Distribution Company (ZETDC), TelOne and Zimbabwe Revenue Authority (ZIMRA) by
exploring aspects of HCM that have been affected by IT and the effect of such adoption on
HCM. This chapter will contain the background of the study, the statement of the problem, the
research objectives and questions, justification of the study and the scope of the study.

1.2 Background of the study

ZETDC, TelOne and ZIMRA are state-owned enterprises which play strategic roles to the
sustainability and success of the country's economy. Their background information, adapted from
www.zesa.co.zw, www.zimra.co.zw and www.TelOne.co.zw respectively (all accessed 07th April
2015), is illustrated in table 1.1 on page 2.

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Table 1.1 Brief background information on ZETDC, ZIMRA and TelOne
Organisation Mandate Date of HCIS Staff Geographical spread
implementation compliment

ZETDC To generate, transmit 2012 6400 Has offices countrywide

and distribute permanent in all cities and towns in
electricity in the and around Zimbabwe.
country. 2000
contract

ZIMRA To collect revenue, 2004 2000 Has offices countrywide

facilitate trade and in all cities and most
travel, advise major towns in
government on fiscal Zimbabwe however their
and economic matters major thrust is visibility
as well as protect at all of the country's
civil society. ports of entry no matter
how remote.

TelOne To be the hub of 2007 2200 Offices at all cities and

excellence in at most major towns in
providing multi- Zimbabwe with a view
media of attaining 100%
telecommunications connectivity
services in countrywide by the year
Zimbabwe, as well as 2020 according to their
to link Zimbabwe to website.
the outside world.

ZETDC is a subsidiary of the Zimbabwe Electricity Supply Authority (ZESA) which is a state-
owned company whose mandate is to generate, transmit and distribute electricity in the country.
Under this company ZETDC is in charge of transmission and distribution of electricity in the
country and retailing since it has interface with customers. ZETDC is also mandated to
administer and balance power supply and demand, and transmission of electricity from existing
and new domestic generation plants and electricity trading in the Southern African Power Pool to
ensure continuity of supply www.zesa.co.zw [accessed: 30th January 2015].

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TelOne, on the other hand, is a telecommunications company whose prime focus is providing
fixed telephone service for both residential and commercial entities in Zimbabwe and it was
licensed in September 2001. The Parastatal was registered in 2000 under the Companies Act
Chapter 24:03 and was born out of the unbundling of the Zimbabwe Posts and
telecommunications Corporation (PTC).

Finally, ZIMRA is the government’s tax revenue collection arm which was conceived in 2001
through an Act of Parliament which amalgamated the Department of Taxes and the Department
of Customs so as to ensure the smooth, centralised and holistic collection of all tax revenue
within the country and around its border posts. All these three parastatals have adopted Systems
Applications and Products (SAP) as their software of choice for Human Capital Management at
their organisations. SAP application is an integrated enterprise resource planning (ERP) software
manufactured by SAP EG which is based in Germany. This company targets the business
software requirements of medium sized as well as large organisations in all industries and
sectors.

Before the implementation of SAP, these three parastatals used manual systems for all operating
functions and the human capital management function was not an exception. This system was
plagued with numerous problems and inefficiencies including difficulty in managing and
calculating employees' leave days and in other situations employees' leave forms were being
misplaced. Furthermore, the manual system had a lot of paper work which was cumbersome as
there was need for continuous filing and record keeping and movement of large volumes of files
and folders leading to loss of some records. Their administration and human resource
departments also faced challenges when facilitating and managing performance appraisals as the
manual system did not provide an objective basis and criteria to appraise their employees as the
appraisal basis was largely dependent on the supervisor or manager who conducted the appraisal.
This caused a lot of friction between the supervisors, managers and their subordinates. One of
the major reasons for this was because of the inefficiency of the workflow which could not detect
where or who was delaying or not accomplishing their tasks. The manual system entailed the
movement of paper files and folders from one office to another or from one individual to another
up until the completion of the task hence in some cases it was difficult to establish where there
was a delay in the workflow or who was sitting on the work. Therefore, appraisal of such work

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became subjective as it depended on how the appraiser viewed or felt about the appraissee.

ZIMRA, TelOne and ZETDC shifted from using a manual system in human capital management
(HCM) to an automated system at different periods. ZIMRA implemented the SAP Human
Capital Management module in 2004. TelOne then followed three years later in 2007 and finally
ZETDC automated in 2012. It can be noted that ZIMRA, although it was the last of the three
parastatals to be conceived, was the first to automate its HCM whilst ZETDC, which is one of
the oldest established parastatals, only recently automated its HCM eight years later in 2012.

According to Twenty Third Century Consultants, a private company hired in 2012 by ZESA to
oversee the implementation of the HCM SAP module, the SAP system would achieve the
following goals under the HCM function:

• to streamline business processes by merging their multiple systems into a single common
solution

• to manage and track employees' maintenance costs

• to manage their employees' performance

• to improve work efficiency through workflow which would improve the management of
assets.

These goals are in line with Gibson (2013) who stated that there was a significant improvement
in HCM for organizations that migrated from manual systems to automated systems especially
when they adopted SAP modules. The case for ZETDC was a success as spelt out in the ZESA
SAP Phase III Evaluation Report (2014), which states:

“since the implementation of SAP there had been a 80% decrease in complaints after
performance appraisals meaning that they could have been now more objective, reduced time
lag from application of leave to approval from days to hours as approval could be done from
anywhere where the manager or supervisor had access to the SAP system instead of face-to-
face performance appraisal as was the case with the manual system. Furthermore, workflow
efficiency has improved as one could trail their work in the system to establish in whose
inbox it was in and hence make follow-ups with the right individual”.

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There have also been improvements in HCM functions at ZIMRA. According to the ZIMRA
Year-end Report (2013), ZIMRA employees indicated that the Human Resources module was
more efficient when applying for leave and furthermore communication with their HR division
on the SAP platform ensured that their human resource queries were quickly dealt with. In the
case of TelOne, since the implementation of SAP, there has been a more efficient movement of
information within their various Human Resource departments across the country. According to
TelOne (2012), the telecommunication organisation used to have stand-alone manual system at
the various regions and districts dotted around the country hence with the adoption of SAP
integrated all the different Human Resource departments country-wide making smooth
communication and uniformity of information accessibility.

Human Capital Information System (HCIS) provides management with strategic data not only in
recruitment and retention strategies, but also in merging HCIS data into large scale corporate
strategy. The data collected from HCIS provides management with a decision-making tool.
Through proper HR management, firms are able to perform calculations that have effects on the
business as a whole. Such calculations may include health care cost per employee, pay benefits
as a percentage of operating expense, cost per hire, return on training, turnover rates and costs,
time required to fill certain jobs, return on human capital invested and human value added. It
must be noted, though, that none of these calculations result in cost reduction in the HR function
(Gerradine DeSantics, 2010). The aforementioned areas, however, may realise significant
savings using more complete and current data made available to the decision makers.
Consequently, HCIS supports the provision of executive reports and summaries for senior
management and is crucial for learning organizations that see their human resources as providing
a major competitive advantage. HCIS is therefore a medium that helps HR professionals perform
their job roles more effectively as HCIS is seen to facilitate the provision of quality information
to management for informed decision-making. (Grallagher, 2006; Broderick and Boudreau,
2012).

On the other hand, there were a number of risks and hindrances that were highlighted by the
Twenty Third Century Consultants (2012) that if not countered could offset the benefits that
could be earned from the successful use and adoption of the HCM SAP module. These risks were
grouped into two, that is those brought about by people and those from the system as illustrated
in table 1.2 below.

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Table 1.2 People and Systems risks that could hinder successful adoption of HCM SAP

People risks Systems risks

Resistance to change Data migration

Management ownership Scope control (Project delivery time)
Project team member ownership System compatibility
Skills gap The development and implementation of
new business procedures;
Team work Delays in resolving basic issues;
Delays in the mobilization of Project Team Delays in hardware delivery;
Staff;
Key users may not be available due to other Delays in availing the Development system
commitments or workloads; to configure the system according to
defined business requirements
Retention of key user skills. Changes in the scope and size of the project
will impact upon timeframes and
deliverables;
Unavailability of super users after Implementation of this project will impact
completion of project upon normal client activities;
Inadequate and untimely provision of Upgrade data centers
resources.
Project fatigue System security
Source: Adopted from ZESA Group project charter (2012)

Some of these risks or hindrances in the adoption of HCIS such as resistance to change, lack of
resources, skills gap and lack of management ownership were noted by Leeroy (2013) to have a
negative effect on HCM as well as performance of the organisation. He further added that it was
essential for HC practitioners of organisations to note the existence of these risks and counter
them at their earliest convenience so as to ensure that they do not hinder the performance and
successful use of their HCIS. However, it was noted in the ZESA SAP Phase III Evaluation
Report (2014) that there were still a large number of users at ZETDC who were still manually
processing some human resource functions even though it was two years after the full
implementation of the HC SAP module. This has also been the case at ZIMRA as highlighted in
their progress report by Twenty Third Century Consultants (2012) that although SAP was
implemented to ensure automated HCM a significant number of staff still preferred to use

6
manual system in some human resources issues like application for leave and performance
appraisals. This has also been an issue at TelOne as well, where 50% of the staff still used the
manual system to accomplish some human resource procedures although the same report stated
that SAP was a more efficient alternative (TelOne, 2013). Therefore there is need to establish
whether the implementation of the HCIS at ZETDC, ZIMRA and TelOne had achieved the
necessary impact and whether they had managed to achieve the goals they had set when they
implemented HC SAP module or whether the HCIS had been hindered by project risks which
could have deterred users from embracing the HCIS.

1.3 Problem statement

Although HCIS was fully implemented at ZETDC, ZIMRA and TelOne, there are still users at
these three organisations who are still processing human resources actions manually. This is
against the background that during the manual era, the three organisations were bedeviled by
delays and workflow inefficiencies which caused high employee disgruntlement, especially
during performance appraisals and delay in approval and management of their leave days.
However, after the implementation of HCIS there has been some positive improvements in the
human resource functions of ZETDC, ZIMRA and TelOne. For example, there was a reduction in
employee complaints from performance appraisals and reduction in delays in leave day's
approval. It was also established that adoption of the HCIS at ZETDC, ZIMRA and TelOne could
have a number of people and system risks which could affect its success through resistance to
change, lack of resources, skills gap and lack of management ownership, among others.
Therefore, it has become necessary to establish the impact of the implementation of information
technology on the human resources function at ZETDC, ZIMRA and TelOne as well as to
establish if these risk factors affected HCIS at ZETDC, ZIMRA and TelOne and whether this
could have influenced employees to revert back to the manual system.

1.4 Purpose of Study

Main objective of this study is to give a comparative investigation of the impact of information
technology on HCM at ZETDC, ZIMRA and TelOne, .and to establish the reasons why staff
revert to manual systems where automated systems have been put in place.

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The objectives of the study are:

i. To identify the key success factors of HCIS implementation at ZETDC; ZIMRA and
TelOne.

ii. To establish the factors hindering the successful implementation of HCIS at ZETDC;
ZIMRA and TelOne.

iii. To establish the benefits of HCIS to ZETDC; ZIMRA and TelOne.

iv. To suggest strategies of improving the implementation of HCIS at ZETDC; ZIMRA and
TelOne.

1.5 Research Questions

i. What are the potential benefits of successful implementation of HCIS to ZETDC,

ZIMRA and TelOne?

ii. To what extent have the three parastatals benefitted from adoption of HCIS?

iii. What is hindering the successful adoption of HCIS at ZETDC; ZIMRA and TelOne?

iv. What are the critical success factors of HCIS implementation at ZETDC; ZIMRA and
TelOne?

v. What strategies could be used to improve HCIS at ZETDC; ZIMRA and TelOne?

1.6 Hypothesis
In addressing the main research question, the following hypothesis is proposed and will
eventually be tested:
H0: The successful implementation of HCIS at ZETDC; ZIMRA and TelOne has no significant
impact to HCM in the organisations.
H1: The successful implementation of HCIS at ZETDC; ZIMRA and TelOne has a
significant impact to HCM in the organisations.

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1.7 Significance of the study
The study will assist in the development of a body of knowledge which can then be used for
policy formulation by ZETDC; ZIMRA and TelOne and consequently, for the development of
the economy.
The findings will also be helpful to other parastatals as it provides them with insights into how
the implementation of information technology would impact on their human capital management
processes, and therefore ensure that failures can be prevented or circumvented.
The study findings will also be used as reference material in future research and development by
information technology firms which are interested in observing how new IT software being
continuously churned out daily on the market is adopted by various companies.
The role of information technology in human capital management is an area with a growing body
of knowledge; this research will make an effort to contribute towards the body of knowledge
with a particular emphasis on HCIS. It will also be helpful to the academia, organisations and
consultants in this field as it will add on to the available literature.
Even though the research will focus on HCIS, the findings and the outcome could be relevant to
practitioners in other areas or industries with particular emphasis on the impact of information
technology on the functions of an organisation.
Furthermore, the study forms a platform for further study in a broader scope. Since this
investigative study only relates to three parastatals, it is the researcher’s intention to pursue
further studies on this topical issue by investigating many more industry players. Previously,
related research was done on single companies or organisations but this research has taken
further steps to offer comparative analysis on several firms.

1.8 Scope of the study

The scope of the research will be limited to the impact of information technology on human
capital management at ZETDC; ZIMRA and TelOne between the period 2009 to 2015. Although
ZETDC, ZIMRA and TelOne have centres dotted all over the country, the research was limited to
selected centres only and could not accommodate all the ZETDC, ZIMRA and TelOne centres
around the country.

The population pool to be used in this study for ZETDC shall be ZETDC Head Office and
Megawatt centre and Gweru Regional Offices, whilst for ZIMRA it shall be ZIMRA head office

9
stationed at ZB Centre, Kurima House station and Airport station, whilst for TelOne centres will
comprise of its Head Office at Runhare House, Zimpost House (Main Post Office) station and
Belvedere TelOne station. The target population shall consist of ZETDC; ZIMRA and TelOne
staff and management at these stations.

The delimitation is necessitated by the size of these three organisations which have stations all
over the country hence it is not feasible in terms of time to spread the study countrywide as the
study is supposed to be completed within six months. Furthermore, the researcher does not have
the financial resources and human resources to sufficiently cater for the study to be conducted
countrywide.

However, the researcher believes that the views of the staff and management stationed at selected
offices are sufficient to represent the views of all the staff and management stationed
countrywide because this is where the majority of the personnel most active in Human
Resources' activities are stationed.

1.9 Assumptions of the study

The following assumptions were made:

It was assumed that all respondents in the study had an appreciation of the challenges
and opportunities brought about by the current HC SAP programme at ZETDC;
ZIMRA and TelOne in their current operations. The respondents were assumed to
have at least some basic understanding of the HC SAP system.

All respondents to the questionnaire had sufficient background information on the

SAP system at ZETDC; ZIMRA and TelOne and were up-to-date with recent
developments in the IT and strategy formulation and implementation in the
organisation in particular.

It was assumed that the current state of affairs at ZETDC; ZIMRA and TelOne would
remain constant during the period of the study as any changes in the sector may affect
the views of the respondents and therefore the findings of the study.

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1.10 Structure of the dissertation
The research consists of five chapters. These are listed below.
Chapter one presents the context of the study, problem statement, research objectives, research
questions, the importance of the study, the scope of the investigation, the definition of the
structure of the thesis and chapter summary.
Chapter Two reviews the literature on the key success factors of HCIS implementation; the
factors hindering the successful adoption of HCIS as well as the benefits of HCIS to an
organisation.
Third Chapter focuses on the methodology used in collecting data. The researcher examines the
design, study population and sample, sampling procedures, research instruments, methods of
data collection limitations, reliability and validity, and how the data is analyzed, processed and
interpreted.
Chapter Four details of the survey results and analysis thereof is performed using statistical
tools. The study results are also discussed in this chapter.
Chapter Five summarizes the study, to give conclusions drawn from research findings and
identify recommendations that have been put forward regarding the results and conclusions of
the investigation.

1.11 Chapter summary

This chapter focused on the background to the study, statement of the problem, the research
objectives, research questions, and significance or justifications of the study. It also highlighted
assumptions of the study, its delimitations and limitations. The next chapter will review literature
by experts in the field of study; the chapter will also unravel possible gaps from the literature.

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 CHAPTER 2

LITERATURE REVIEW

2.1 Introduction
This chapter seeks to review literature related to human capital information system and it begins
with a discussion of what human capital management and human capital information system are.
The chapter will also outline the critical success factors of HCIS implementation and reasons
why staff revert to manual system and factors hindering implementation of HCIS. The chapter
then ends with an analysis of critical factors for the failure of HCIS implementation and a
discussion of the models of HCIS adoption.

2.2 Human Capital Management

Human capital management is the management of an organization's workforce, or human
resources (Dessler, 2013). It is responsible for the attraction, selection, training, assessment, and
rewarding of employees, while also overseeing organizational leadership and culture, and
ensuring compliance with employment and labor laws. Ball (2005) defines human capital
management as the strategic management of the employees, who individually and collectively
contribute to the achievement of the strategic objectives of the organization. Assuming that the
employees of an organization are individuals with own mental maps and perceptions, own goals
and own personalities and as such they cannot be perceived as a whole, human capital
management holds that the organization should be able to employ both individual and group
psychology in order to commit employees to the achievement of organizational goals
(Hendrickson, 2007).

Furthermore, Lippers and Swiercz (2005) adds that in the current knowledge economy, the
success of organizations depends mainly on the performance of their human capital. However,
Ball (2005) argues that human capital management is about the procedures and practices that
encompass the human capital aspect within organizations. Additionally, David (2006) believes
that such practices should be connected to the overall strategy of the organization. He further

12
posits that organizations do not owe their success solely to market realities and sustainable
competitive advantages but successful companies are those that consider their human capital as
their most important asset. According to Dessler and Al Ariss (2012), facts and figures are the
quantitative elements of successful management, yet the qualitative, that is, the cognitive aspects,
are those that actually make or break an organization.

2.3 Human Capital Information System

Adewoye (2012) believes that human capital information system is one of the most important
management information systems, which contributes to human capital administration functions
of an organization. Human capital information system is described by Noe et al. (2007), as a
computer system used to acquire, store, manipulate, analyze, retrieve, and distribute information
related to human capital. Modern human capital information system needs to help organizations
by automating most of the human capital planning functions hence David (2006) adds that the
system becomes an important strategic tool since it collects, manages and reports information for
decision-making.

A view shared by Adewoye (2012) and Ball (2005) is that fully integrated organizational human
capital information system ought to interface with other systems enabling and enhancing the
communication between departments such as payroll system with accounting system. Ball (2005)
also adds that since the system deals with employees' personal data, which are sensitive, it should
ensure data security while transferring information from one place to another. However,
Armstrong (2006) argues that it should be able to enhance communication between employers
and employees and build strong relationship with unions and management committees.

According to Beckers and Bsat (2012), human capital information system involves a set of
internally consistent policies and practices designed and implemented to ensure that a firm's
human capital contribute to the achievement of its business objectives. In addition, Adewoye
(2012) states that its concern is to ensure that human capital management is fully integrated with
information systems needs of the firm; human capital policies coherent both across policy areas
and across hierarchies; and human capital practices are adjusted, accepted, and used by line
managers and employees as part of their everyday work. Furthermore, Broderick and Boudereau

13
(2011) are of the view that the system should be capable of identifying trends, evaluating and
managing costs, comparing the organization with other competitive organizations and issue
relevant reports. New human capital information system trends seem to build important effect on
human capital planning embedding new technology with organizational objectives and goals. On
the other hand Adewoye (2012) argues that enterprise resource planning system, when linked
with the human resource information system, provides a competitive advantage to organizations
over their competitors. Therefore, Broderick and Boudreau (2011) reiterates that human capital
information system implementation should be macro oriented, proactive and long term focused
in nature, thus viewing human capital as assets or investments rather than expenses.

2.3.1 Contents of Human Capital Information System

According to Skitmore and Sharma (2011) as the economy shifts gears, organisations adapt by
the careful examination of trends in the market and aligning it to value creation. Therefore,
Tansley et al (2011) believes that organisations must invest further on information technology
and information systems to lead the market and gain a competitive advantage. Adewoye (2012)
alleges that gradually, an information system turns out to be the backbone of organizations, used
for most of the operational level activities such as sales/marketing systems,
manufacturing/production systems, finance/accounting systems, and human capital system,
hence promoting effective and efficient services. To this end, this study shows that information
system has been developed to support business decision making in order to increase the quality
of business decisions.

Kavanagh et al. (2010) notes that human capital information system functions comprise of
human capital planning, staffing, training and career development, performance management,
and compensation management. They further explained human resource information system in a
continuum namely; transactional processing system, management information system, decision
support system and executive support system of which David (2006) and Ball (2005) were of the
view that one of the major types of systems used at the operational level of an organization is the
transaction processing system.

14
The transaction processing system is the basic business system that serves the operational level
of the organization. According to Skitmore and Sharma (2011) transaction processing system is a
computerized system that performs and records the daily routine transactions necessary to
conduct business and examples are skills inventory, employee training data, performance data
and payroll.

Adewoye (2012) states that management information system serves the management level of the
organization, providing managers with reports and often online access to the organization's
current performance and historical records. He adds that typically, management information
system is oriented almost exclusively to internal events, not environmental or external events. It
primarily serves the functions of planning, controlling, and decision making at the management
level. However, Tansley et al (2011) argues that generally, it depends on underlying transaction
processing systems for its data.

Decision-support system also serves the management level of the organization. It helps managers
make decisions that are unique, rapidly changing, and not easily specified in advance. This
includes succession planning, staffing simulation, compensation and performance management
simulation. According to Ball (2005) they address problems where the procedure for arriving at a
solution may not be fully predefined in advance.

Broderick and Boudreau (2011) align senior managers to the executive support systems to help
them make decisions and executive support system serves the strategic level of the organization.
David (2006) believes that it addresses non-routine decisions requiring judgment, evaluation, and
insight because there is no agreed-on procedure for arriving at a solution. He also states that it is
designed to incorporate data about external events, such as new employment and labour laws, but
they also draw summarized information from internal management information system and
decision-support system.

However, Adewoye (2012) argues that the systems support different organizational levels and in
most firms, these systems are loosely coupled resulting in inefficient information transportation
from one to another, leading to failure to respond quickly to the challenges in the business

15
environment. Lack of system integration becomes crucial when organizations try to achieve
corporate objectives. Therefore, Kavanagh et al (2010) highlights that it is definitely
advantageous to integrate these systems so that information can flow easily between different
parts of the organization and provide management with an enterprise-wide view of how the
organization is performing as a whole.

2.4 Critical success factors in the implementation of HRIS

Implementation of human capital information system is an organizational change. For any
change, resistance is expected. McElroy (2011) states that to ensure successful human capital
information system implementation, context issues need to be assessed. Successful
implementation of human resource information system relies on the support of top management,
the support of the information technology department, the involvement of human capital
experts/consultants, support of human capital staff, computer knowledge of human capital staff
and human capital information system training .These six influencing factors are discussed as
follows:
2.4.1 Top Management Support
According to Wong et al. (2014), for system acceptance the most needed support comes from top
management. Top management support is needed throughout the implementation. The project
must receive approval from top management (Bingi, 2009; Buckhout, 2009; Sumner, 2009) and
align with strategic business goals (Sumner, 2009). Wee (2010) believes that this can be achieved
by tying management bonuses to project success. He further states that top management needs to
publicly and explicitly identify the project as a top priority. According to Holland et al (2009)
they must be committed with its own involvement and willingness to allocate valuable resources
to the implementation effort. Top management takes primary responsibility for providing
sufficient financial support and adequate resources for building a successful human capital
information system. On the other hand Roberts and Barrar (2012) argue that this involves
providing the needed people for the implementation and giving appropriate amount of time and
resources to get the job done. They add that the lack of financial support and adequate resources
will inevitably lead to failure.

16
Wong et al (2014) postulate that a comprehensive human capital information system requires a
sizeable budget to implement and maintain. This view is in line with Ngai and Wat (2006) who
add that if top management does not understand how the human capital information system
brings the benefits to the organization, they will not be willing to allocate valuable resources,
time and efforts of implementation. Sumner (2009) affirms that managers should legitimize new
goals and objectives whilst a shared vision of the organization and the role of the new system and
structures should be communicated to employees. Roberts and Barrar (2012) are of the view that
new organizational structures, roles and responsibilities should be established and approved
whilst policies should be set by top management to establish new systems in the company. They
also add that in times of conflict, managers should mediate between parties. Dessler (2013) adds
that in circumstances where employees desire, and are legally authorized, to hold a collective
bargaining agreement, human capital information system can be used to serve as the company's
primary liaison with their employees by evaluating jobs and measuring performance.

2.4.2 Effective Communication

Falkowski et al (2008) states that effective communication is critical to system implementation
and expectations at every level need to be communicated whilst Wee (2010) adds that
management of communication, education and expectations are critical throughout the
organization. On the other hand, Rosario (2010) argues that user input should be managed in
acquiring their requirements, comments, reactions and approval. In addition, Holland et al (2009)
asserts that communication includes the formal promotion of project teams and the conveyancing
of project progress to the rest of the organization. Middle managers need to communicate its
importance (Wee, 2000) whilst employees should be told in advance the scope, objectives,
activities and updates, and admit change will occur (Sumner, 2009). Communicating quickly and
in an effective way across organizational, functional and cultural boundaries is crucial.

According to Koster (2010) members of the project team need to be able to communicate with a
common language. Communication between managers and employees within the organization is
a vital way to get people motivated. Koster (2010) also noted that employees are more motivated
by recognition and constructive feedback by their line manager whilst two-way communication
allows employees also to state desired outcomes to their manager. Unfortunately, Brooks (2013)

17
argues that many managers lack communication skills and communication has to be well
planned. This view is supported by Green (2007) who adds that communication has to be
planned for the right people at the right time via the right communication channel.

2.4.3 Training
Implementing a new system can positively impact a business, providing a foundation for
development and improvement. Training has a key role to play in delivering successful
implementations, as the way people are introduced to any new system and how they learn to use
it may be the main contact they have with the programme. Delivering training that engages and
motivates staff to embrace change is the key. Education should be a priority from the beginning
of the project as it encourages acceptance and gears up the mind for continuous improvement.
Roberts and Barrar (2012) support the notion that money and time should be spent on various
forms of education and training. Training, re-skilling and professional development of the
workforce in computer skills help achieve optimal human capital information system
effectiveness (O'Connell, 2014). Lack of computer knowledge for relevant employees has been
attributed to slowness in applying information technology to human capital departments
(Kavanagh et al., 2010).

Kossek et al. (2014) also mention that user skill level may be strongly related to the variance in
attitudes toward the value of human capital information system. (Denton, 2007) and DeSanctis
(2006) describe that one of the potential problems of human capital information system
management is a lack of employee technical training and experience in information management.
Kavanagh et al. (2010) also commented that for a successful human capital information system,
appropriate training should go to all human capital staff, line managers, as well as other
employees. User training should be emphasized, with heavy investment in training and reskilling
of developers in software design and methodology (Sumner, 2009). Employees need training to
understand how the system will change business processes.

2.4.4 Support of Information Communication and Technology Department

In the evolution of human capital information system, the information system department plays a
major role in facilitating the computerization of human capital information (Kinnei and Arthurs,

18
2013). DeSanctis (2006) concluded from her survey that although the human resource
information system has established independence from corporate management information
system, it has not yet matured to be an independent entity within the personnel area in a large
number of firms. Cholak and Simmons (2011) also mentioned that human resource information
system still requires the participation of information technology department, particularly in the
planning and developmental stages. There should be on-site support for staff as well as managers
during implementation. A support organization in the form of information technology experts
and/or consultants offering, for example, help desk, online user manuals and periodic trade visits
is also critical to meet users' needs after installation (Wee, 2010).

2.4.5 Support of Human Capital Department

Human capital department should be responsible for advocating the project, providing
justification for the human capital information system, and for resources acquisition. Lederer
(2014) reports that more and more firms formally housed the human capital computer systems
within the human capital department. He also comments that the personnel department is in the
best position to obtain and keep an organization's human capital information system. However,
Kossek et al. (2014) find that in corporations, the higher the positions in the human capital
department, the more negative they become toward the human capital information system.
According to Kossek et al. (2014), human capital managers interviewed revealed that human
capital information system use is viewed as a clerical activity that does little to enhance human
capital's reputation. In addition, a human capital information system may foster increased
information sharing. Since information is power, the system has the potential to change the
power dynamics (Kossek et al., 2014).

2.4.6 User Involvement and Participation

Involvement of human capital staff is very important. Pitman (2014) states that resistance to
change, fear of the unknown and computer phobia are the major impediments to human capital
information system implementation therefore user participation is a critical factor to successful
change. Since clerical staff have considerable responsibility in system operations, their support is
crucial. Organizations should have a strong corporate identity that is open to change. An
emphasis on quality, a strong computing ability, and a strong willingness to accept new

19
technology would aid in implementation efforts. Management should also have a strong
commitment to use the system for achieving business aims (Roberts and Barrar, 2012). Users
must be trained, and concerns must be addressed through regular communication, working with
change agents, leveraging corporate culture and identifying job aids for different users (Rosario,
2010). As part of the change management efforts, users should be involved in design and
implementation of business processes and the system, (Bingi et al., 2009; Holland et al., 2009).

2.5 Reasons why staff revert to manual systems

A study was conducted by Fredrick Consultancy (2014) at 288 companies worldwide on the
reasons employees and management resisted the adoption of new HCM technology implemented
at their organisations, whilst reverting back to manual systems of HCM processes. The following
reasons were highlighted as discussed below:

2.5.1 Employees' reasons

Participants gave a variety of reasons for resisting HCIS by employees and managers. The major
reasons for employees reverting to manual system of conducting human resources procedures
and practices according to Fredrick Consultancy (2014) were:

2.5.1.1 Lack of understanding around the vision and need for change
Participants indicated that the primary reason for employee reverting to the manual system was
that employees did not understand the vision of this particular change to HCIS. Employees did
not clearly understand why the change towards the use of HCIS was happening, nor did they
have adequate knowledge regarding the change itself. According to Adewoye (2012) in such
situations employees do not have the answer to the questions like, "what's in it for me?", "Will I
have a job?," "How will it impact my daily work?," as well as "How will I benefit from the
change?". Therefore, they tend to revert back to the manual systems which they were previously
using and had more understanding of.

2.5.1.2 Comfort with the status quo and fear of the unknown
According to the study findings by Fredrick Consultancy (2014), participants stated that
employees tend to be complacent, or that the current way of doing business had been in place for
a long time. This view is shared by Wong et al (2014) and Wee (2010) who further emphasize
that under such conditions current HCM processes and systems seem fine to the employees,

20
hence they were opposed to the change since it forced them out of their comfort zone. In
addition, David (2006) highlights that uncertainty and fear of the new system compounds the
desire of employees to continue with the "old way", which is the manual system, to which they
had grown accustom.

2.5.1.3 Corporate history and culture

Fredrick Consultancy (2014) also noted that the organization's past performance with previous
change projects impacted the employees' support of the current HCIS project. According to
Roberts and Barrar (2012), employees would have been desensitized to change initiatives,
especially if many had been introduced and failed. They would view the project merely as the
"flavor of the month," with employees expecting it to go away like the previous others.

2.5.1.4 Opposition to the new technologies, requirements and processes introduced by the
change
Many participants felt that some employees reverted to manual system because of opposition to
the actual implementation of the new technology (Fredrick Consultancy, 2014). According to
Adewoye (2012), in such cases employees were opposed to changes that increased the
performance and process measurement of their work as they believed it added unwanted work,
responsibility and accountability. On the other hand Sumner (2009) argue that some employees
opposed the new HCM processes, systems or technologies because they felt the change would
not solve the problems.

2.5.1.5 Fear of job loss.

Fredrick Consultancy (2014) also established that employees perceived the implementation of
new systems and technologies as a threat to their own job security. This view is shared by Bingi
(2009) who adds that some employees felt that the adoption of HCIS would eliminate the need
for their job, while others were unsure of their own abilities and skills in the new environment.

2.5.2 Reasons why managers revert to the manual system

On the other hand, the major reasons for managers reverting to the manual system whilst
resisting the adoption of HCIS at their organisations were:

21
2.5.2.1 Loss of power and control.
According to Fredrick Consultancy (2014) the leading reason for manager reverting to the
manual system of HCM processes was a fear of losing power. Adewoye (2012) notes that
changes often eliminated something the manager had control of or introduced something that the
manager would not have control over. Managers perceived the changes in systems from manual
to HCIS as infringements on their autonomy, and some participants indicated that the change was
even perceived as a personal attack on the managers. Managers react to the change initiative as a
"battle for turf" hence they continued to insist on the use of manual processes in HCM.

2.5.2.2 Overload of current tasks, pressures of daily activities and limited resources.
Fredrick Consultancy (2014) discovered that managers felt that the change was an additional
burden and limited resources compounded the problem. In Skitmore and Sharma's (2011) view in
such a situation the change initiative seems like extra work and resource strain at a time when the
pressures of daily activities were already high. In many projects, managers were expected to
continue all of their current duties in addition to the duties of implementing the adoption of HCIS
at their stations.

2.5.2.3 Lack of skills and experience needed to manage the change effectively.
Managers were fearful of the new demands that would be placed on them by the adoption of new
technology like HCIS (Fredrick Consultancy, 2014). Several skill areas were identified by
Roberts and Barrar (2012) in such cases as areas of concern. First, managers were uncomfortable
with their role in managing the change. Some feared recrimination while others did not have the
experience or tools to effectively manage their employees' reverting to the manual system.
Additionally, Tansley et al (2011) also postulate that managers also were concerned about the
demands and responsibilities placed on them by the new business processes, systems or
technologies.

2.5.2.4 Fear of job loss.

The findings by Fredrick Consultancy (2014) also established that managers felt that the business
change would ultimately impact their own job security. According to Adewoye (2012) middle

22
management is often the victim of large-scale business change. One participant reaffirmed this
fear:
"They were eliminated in the change, so no reverting to the manual system was recorded."

2.5.2.5 Disagreement with the new way

According to Fredrick Consultancy (2014) some managers disagreed specifically with the
change. They did not feel that the solution was the best approach to fixing the problem. Bingi
(2009) noted that managers who did not play a role or provide input in the design and planning
phases tended to resist the solution. Therefore, some participants felt that the reverting to the
manual system was due to the solution not being the idea of the manager ("not invented here").
Furthermore, Fredrick Consultancy (2014) also established that most managers were skeptical
about the need for a change from the manual system to the adoption of HCIS. This view is
enhanced by Buckhout (2009) who highlighted that some managers were not convinced of the
need for the change and they did not see the business issues in HCM driving the change. On the
other hand, Bingi (2009) argues that in most cases managers did not identify the same problems
as the design team.

2.6 Factors that hinder the implementation of HCIS

Despite all the money, energy and efforts spent by companies trying to make their organizations'
HCM successful, implementation of HCIS is still an unfulfilled promise. Even substantial HCIS
pay-offs appear to have fallen well short of their potential. Harari (2006) suggests that HCIS
projects are suffering in most organisations, not because the system is flawed, but because of
implementation problems.

2.6.1 Misunderstanding of the system

The HCIS is sometimes misunderstood according to Attaran (2014) who further highlights that
lack of understanding of the system and inappropriate application will all contribute to
organizations' failure to appreciate the promise of HCM. HCIS is human capital design, human
capital management, and human capital innovation. Wee (2010) emphasises that HCIS involves
revising organizational human capital and it involves re-configuration of HCM work to serve
staff and management better. HCIS forces organisations to challenge the way that they manage
their human capital and to redesign the organizations around the desired outcomes rather than

23
functions or departments. According to Tansley et al (2011) the old way of HCM, the vertical
organizations, the promotion and compensation schemes, and the whole decision making
schemes no longer work in the current globalised and technological environment organisations
are now in.

2.6.2 Lack of proper strategy

According to Oakland (2014), a major reason given for the failure rates of HCIS efforts was that
the efforts had not been connected to the corporate goals. HCIS is about HCM operations, and
the latter feeds and intergrates into corporate strategy. This integration can show that HCM
operations matter and HCIS programs should concentrate on understanding the existing HCM
process. On the other hand, Harari (2006) argues that the output goals must be stated in clear and
quantitative terms as well as providing more accurate representations of how HCIS is a subset of
the whole corporate strategy.

2.6.3 Unrealistic objectives

According to Attaran (2014), evidence suggests that the implementation of HCIS always takes
longer than expected, always involve more people and resources than are available, and always
presents problems no one anticipates. Therefore, Adewoye (2012) argues that in most cases the
results of HCM efficiency may take time to be visible hence some employees tend to revert back
to the manual system that they perceive to be more reliable and comfortable to them.
Management has the mandate to set attainable targets for project teams implementing HCIS
taking into account as highly as possible likely bottlenecks and putting in place back-up plans to
curb shock from unforeseen eventualities.

2.6.4 Management failure to change

Sutcliffe (2009) states that lack of leadership is a frequent cause for the high failure rate of HCIS
projects, as HCIS implementation requires a top-down, directive leadership style. Furthermore,
Buckhout (2009) adds that it also requires the management of motivated, skilled, independent-
thinking people and a fundamental source of difficulties is the fact that the system is
implemented while management does not adopt it wholesomely in their management style and
activities that concern HCM. Wee (2010) argues that HCIS calls for changes in management
style as it forces managers to re-evaluate not only what they do with their subordinates, but also
how they do it. He states that HCIS will change management's way of thinking, organizing,

24
planning, deploying, inspiring and rewarding the performance of their employees. They must
learn to organize work in a holistic, integrated way. Oackland (2014) adds that management must
create an environment where generalists are replaced with specialists, and where preoccupation
with manual activities is shifted to a design focused on HCM.

2.6.5 Failing to recognize the importance of people

According to Wong et al (2014) many companies who attempt to implement HCIS focus on its
process design and ignore or underestimate the importance of people. They also add that without
a proper approach to dealing with employees involved, the implementation is guaranteed to fail.
This is also in line with Attaran and Wood (2009) who state that HCIS changes all aspects of a
HCM business at the organisation. Wee (2010) adds that when process changes, the jobs of those
who do the work in that process must also be changed. Wee (2010) also highlights that the
implementation of HCIS changes almost the whole staff compliment's job causing employees at
all levels to require new skills to use it. Furthermore, Wong et al (2014) believe that HCIS
usually involves the process of combining many job categories into one, which requires
extensive technical cross training.

Thorough skills assessment of the workforce should be undertaken through job-analysis and
needs-analysis. The analysis should determine what skills are needed and what changes have to
take place. According to Harari (2006) HCIS may cause enormous changes in the organization
therefore it has a tendency to cause organizational anxiety. Bingi (2009) adds that one of the
challenges of implementing HCIS is coping with the reaction of employees and employees'
reverting to the manual system to change and their fears about job displacement need to be
alleviated and explained. Making employees' feel they own the HCIS efforts can improve
employee's moral and soothe negative feeling.

2.7 Intermediate benefits of HCIS

HCIS provide the business infrastructure and implementing the system is not an issue of
changing software, but an issue of transforming HCM business processes. Hence the
examination of how HCIS affect the organization at intermediate process levels brings insight
into the matter. To this end, Chand et al. (2010) suggest a balanced-scorecard based framework
to assess the organizational benefits of HCIS. The benefits of implementing HCIS are evaluated

25
not only in financial terms (for example lower costs), but also in terms of process level
performance (for example, improved turnover times), employee value (for example, improved
service), and organizational learning value (for example, better understanding of HCM business
and innovation).

In addition, Kim (2014) suggests that the benefits of HCIS can be analyzed dependent on the
three effects that HCIS have at firm level: automate informate or transformate effects. This could
be in the form of a twelve-cells framework results which is usually used in analyzing ERP
systems. Each cell contains a set of financial and non-financial success measures of HCIS. Law
and Ngai (2007) present an argument that the combination of non-financial measures (for
example, employee satisfaction, internal processes, ability to innovate and learn) offers a deeper
analysis of the sources of benefits of HCIS and the future impact on the organisation's bottom
line.

Chand et al. (2009) hints that companies start HCIS implementation with the intention to
automate their HCM processes. At this level, operational benefits of HCIS are identified based
on specific goals within each of the four balanced scorecard perspectives: to improve process
efficiency, meet current needs of employees more efficiently, reduce costs and increase
productivity. Hunton et al. (2013) put forward that when the HCIS is in operational use,
companies realize that it can be used to provide information to all the parties across the value-
chain. At this informate level, tactical benefits of HCIS may be evaluated contingent on the
specific goals of each of the four dimensions of the balanced scorecard: to improve tactical
decision-making, identify and fulfill employee needs proactively, and workers becoming more
effective decision makers (Hitt et al., 2012).

26
Table 2.1 HCIS Scorecard
HCIS Benefits Process Employee Finance Innovation
Automate Goal: Improve Goal: Meet Goal: Reduce Goal: Increase
(Operational process current needs of costs productivity
benefits) efficiency employees more
efficiently
Success Success Success Success
Measures: Measures: Measures: Measures:
Error reductions, Improved reduced Power user
faster response time, inventory involvement in
processing, reduced carrying costs, user training for
consistent data, employee lower labour operational
increase in complaints, costs tasks.
throughput reduced errors

Transformate Goal: Improve Goal: Identify Goal: Increase Goal: workers

(Strategic tactical decision and meet revenue become more
benefits) making employee needs effective
Success proactively decision makers
Measures: Success Success Success
Improved work Measures: Measures: Measures:
scheduling, Better employee better Training for
improved work expectations forecasting decision making
assignment, setting, skills, worker
improved access improved empowerment
to information, employee for taking action
improved quality satisfaction,
management, improved
improved scheduling and
control delivery

Goal: Adapt to Goal: Meet new Goal: Improve Goal: Absorb

radical staff needs or market value radical changes
environment new staff needs
changes
Success Success Success Success
Measures: Measures: Measures: Measures:
Technology Increased Growth Change
changes, partnership with capitalisation, management
competition staff New markets processes, and
changes broaden horizon
Source: Adapted from Chand et al. (2009)

27
Baki and Caker (2009) further elaborate that at this transformative level, strategic benefits of
HCIS may be assessed depending on the goals within each of the balanced scorecard dimensions:
to adapt to radical environment changes, meet staff needs or new needs of employees, and
improve market value. An important conclusion is that the goals for implementing the HCIS
must be considered in the assessment of the impact of HCM on business performance. The
operational, tactical and strategic benefits of HCIS impact the bottom line performance in
different ways. Chand et al.’s (2009) framework captures these different ways of impact using
the balanced-scorecard lens. However, this framework does not highlight the links between the
benefits of HCIS that would show how HCIS create value within organizations. Therefore, using
Chand et al.’s (2009) framework as a lens for the identification of the benefits of HCIS, this
study puts forward a set of interrelationships between motivations for implementing HCIS, the
HCM and the different types of benefits of HCIS generated at the HCM process level, employee
level, financial level and learning and growth level (Velcu, 2007).

2.8 Advantages and Disadvantages of implementing HCIS

There are many varied rationales advanced by different companies on the adoption of HCIS.
Olson (2014) put forward that it offers an integrated system shared by all users rather than a
diverse set of computer applications, which rarely can communicate with each other and where
each possess its own set of data and files. Furthermore, Davenport (2010) asserts that HCIS
provides a means to coordinate HCM information system assets and information flows across the
organization. Moreover, Kochi (2011) posits that the main benefit is the elimination of sub-
organizational silos that focus on their own problems rather than serving the interests of the
overall organization. Donavan (2012) contends that on the downside, HCIS impose one
procedure for the entire organization, which requires everyone to conform to the new system.
However, the benefits of integration are usually much greater than the costs of conformity. This
view is further emphasized by Adam et al. (2014) who highlight that data can be entered once, at
the most accurate source, so that all users share the same data (data integration), and this can be
very beneficial to the organization when it comes to their reports analyses. As errors are
encountered, users demand correction. Procedures are needed as well to ensure that changes do
not introduce new errors. Hedma (2012) states that this makes it more challenging to correct
data, but again, this added inconvenience is usually well worth the gains of data integration.

28
According to Lian (2011), HCIS also can provide better ways of doing things. He postulates that
this idea is the essence of best practices, a key SAP system component. However, Miller (2013)
argues that the drawback to best practices are that identifying the best way to proceed with
specific HCM functions takes great effort, and such practices can involve significant change in
how organizational members do their work. Hitt et al. (2014) add that as with any theory, what is
considered best by one is often not considered best by all, hence HCIS is usually adopted with
the expectation that it will yield lower computing costs in the long run. Ideally, Parr’s (2014)
observes that adopting one common way of doing things is simpler and involves less effort to
provide computing support to an organization. In practice, savings are often not realized, due to
failure to anticipate all of the detailed user needs, as well as the inevitable changes in the
business environment that call for different best practices and computer system relationships.

According to Olson (2004) the key rationales or value propositions for implementing HCIS are:
a) Technology – more powerful, integrated computer systems,
Greater flexibility.
Lower IT cost.
b) Business practices – better ways of accomplishing tasks.
Better operational quality.
Greater productivity.
c) Strategic – cost advantages gained through more efficient systems.
Improve decision making.
Support business growth.
Build external linkages.
d) Competitive – keep up with competitors adopting HCIS.
Greater cost efficiencies.
Better employee service and motivation.

2.9 Critical failure factors of HCIS implementation

According to Shirouyehzad, Badakhshian, Dabestani and Panjehfouladgara (2010) there is quite
a lot of literature on Critical Failure Factors, but there is not much published framework or

29
outline to prevent the problems occurring in the organizations and also to provide system’s
requirements before HCIS implementation. However, below are some of the major failure factors
that may affect implementation of HCIS.

Table 2.2 Critical Failure Factors of ERP Implementation

Critical Failure Factors Failure Mode

Organization Fit Insufficient resources.

Failure to redesign HCM processes.
Fail to support cross-organization design.

HCIS Teamwork & Skill Mix
Project Management & Control
Software System Design
User Involvement and Training
Failure to recruit and retain HCIS professionals.
Lack of appropriate experience of the user
representatives.
Failure to mix internal and external expertise
effectively.
Lack of agreement on HCIS project goals and
scope.
Lack of senior management commitment to
project.
Lack of effective project management
methodology.
Unable to comply with the standard which HCIS
software supports.
Lack of integration between enterprise-wide
systems
Developing the wrong functions and wrong user
interface
Conflicts between user departments
Fail to get user support
Low key user involvement
Inadequate training & instruction

Technology Planning Capability of current enterprise technical

infrastructure
Attempting to link legacy systems.

Communication Inefficient communication

Expectations communicated at all levels

Change Management (BPR) Inadequate change management

Source: Shirouyehzad et al, (2010)

30
2.10 Model for HCIS Adoption
The ultimate goal of the proposed model is to predict or understand HCIS adoption intention.
According to the Theory of Reasoned Action (TRA), a person’s intention is a function of two
determinants which are subjective norm and attitude. It simply refers to a person’s judgment that
performing the behaviour is good or bad, or that he is in favour of or against performing the
behaviour. Attitude, according to the Technology Acceptance Model (TAM), is considered as a
mixed measure having two different types, which are cognitive attitude and affective attitude
(Yang and Yoo, 2014). The affective dimension of attitude focuses on how much a person likes
the object of thought and measures the degree of emotional attraction towards the object, while
the cognitive dimension of attitude refers to an individual’s specific beliefs related to the object
and consists of the evaluation, judgment, reception, or perception of the object of thought based
upon values. Intention toward behaviour is explained as the strength of one’s intention to
perform a specified behaviour in the TRA. Also, TAM postulates that technology usage is
determined by behaviour intention. These show that the attitude is very critical factor to form
behaviour intention (Triandis, 2007; Bagozzi, 2001). Therefore, the attitude toward HCIS
adoption will affect the intention toward HCIS adoption positively.

Figure 2.1 shows the integrated model for HCIS adoption intention model. The theoretical
constructs incorporated in the integrated conceptual model are perceived strategic value,
perceived ease of use, perceived usefulness, organizational readiness, external pressure, attitude
toward HCIS adoption, and intention toward HCIS adoption.

31
Perceived
Strategic Value

Perceived ease
of use
Attitude Intention
Toward Toward
Perceived HCIS HCIS
usefulness Adoption Adoption

Organizational
readiness

External
pressure

Figure 2.1 Integrated HCIS Adoption Intention Model

Source: Hwang (2006)

2.10.1 Perceived Strategic Value

In this study, perceived benefits are defined as a person’s perception of the possibility of having
positive outcome or gains associated with HCIS. For example, the perceived benefits of HCIS
adoption are streamlining the HCM process, cost-saving, coordinated HCM and so on (Hunter et
al., 2013). Perceived risk is a subjective probability of suffering a loss in the pursuit of a desired
outcome or a person’s perception of the possibility of having negative outcome or suffering harm
or losses associated with HCIS (Liu and Wei, 2013). Perceived risk of HCIS adoption includes
financial risk, physical risk, security risk and performance risk. According to Theory of
Reasoned Action (TRA) and many other studies, the attitudes are the function of the beliefs and
if performing a given behaviour leads to a positive outcome (perceived benefits), it will, in turn,
lead to a favourable attitude (Hunton et al, 2013). If performing a given idea leads to a negative
outcome (perceived risks), it will produce an unfavourable attitude. Based on these, the study
therefore posits that the perceived value of HCIS will affect the attitude toward HCIS positively.

2.10.2 Organizational Readiness

While it is important for firms to perceive the benefits of HCIS adoption, the fact that the
perceived benefits can be achieved within the allotted resources should not be ignored. Usually

32
costs and technological knowledge have been identified as two of the most important
organizational readiness factors that hinder IT growth in organizations (Iacovou et al., 2008).
Kuan and Chau (2011) consider two other organizational elements namely financial readiness
and technological readiness as vital factors. Davenport et al (2008) put forward that fast
communication, proper structure to implement, enough financial resources, rich and competent
knowledge and skills, and top management support as examples of organizational readiness. In
the adoption process, financial readiness and technological readiness are perceived measures in
nature, rather than real measures (Chung and Snider, 2010). Organizational readiness, as a
perceived measure, will have positive impact on the attitude towards HCIS adoption.

2.10.3 External Pressure or Support

Many companies are willing to adopt HCIS not only because of internal capability but also
because of environmental factors. According to Iacovou et al. (2008), external pressure refers to
influences from the organizational environment. They consider two main sources which are
competitive pressure and new position by trading partners in HCIS adoption context. HCIS
context has different external pressure elements in nature. Grandon and Pearson (2014) suggest
five external pressure elements in HCIS which are competition, social factors, dependency on
other firms already using HCIS, the industry, and the government. On the other hand, many firms
implement HCIS through outsourcing which includes training, maintenance, and updating. So
enough external support may force organisational change, and will have a positive impact on
management attitude towards HCIS adoption.

2.10.4 Perceived Usefulness

Perceived usefulness is defined as “the extent to which a person believes that using a particular
technology will enhance his or her job performance” (Davis, 2009). Hendrickson et al. (2013)
supports the relationship between the perceived usefulness and the attitude. Perceived usefulness
is about the perception of the usefulness in executing HCIS activities to accomplish the goal.
Therefore, perceived usefulness is the extent to which a person believes that implementing any
HCIS activities will increase the performance of the company. If a person in the human capital
department perceives a high level of usefulness in adopting HCIS, it would be likely to yield
more positive attitude towards HCIS adoption.

33
2.10.5 Perceived Ease of Use
Perceived ease of use, in Technology Acceptance Model (TAM), is defined as “the degree to
which a person believes that using the system will be free from efforts” (Vendartesh and Morris,
2010). Many studies (Doll et al., 2008; Davis et al., 2009) support the relationship between the
perceived ease of use and attitude. Perceived ease of use is the perception of the ease of
implementing HCIS. Therefore, in this study, perceived ease of use is defined as the extent to
which a person believes that implementing HCIS activities will be free from difficulty, and will
ultimately affect the attitude towards HCIS adoption positively. In technology acceptance
research studies, perceived ease of use has been shown to have a positive effect on using
technology (Davis et al., 2009).

2.10.6 Case Studies

To examine the suggested model, the study reviews five cases of HCIS adoption selected from
different referred journal articles.

2.10.6.1 The City of El Paso (Solis et al., 2008)

The City of El Paso is one of the 25 largest cities in the United States. A number of problems
were found in the stage of initial HCIS system implementation:
i. Some department managers hesitated in assigning their star performers to take key user
roles in system implementation (Top management support).
ii. Some department managers did not appear to apply enough pressure on their personnel
to ensure proper system usage (HR issues).
iii. Some members of the core team were not fully equipped to undertake the HCIS project
(employees’ skill, knowledge and experience).
iv. The Project Team Leader was not able to exercise proper authority over the core team
members because some of whom continued to be on call for other work associated with
their home department (HR issues).

2.10.6.2 Comp Group-Middle Eastern manufacturer (Al-Mashari and Al-Mudimigh, 2013)

Comp group is a major Middle-East manufacturer which represents a network of complementary
companies (Comp1, Comp2, Comp3, and Comp4). Qualitative case study technique was used for

34
data collection. Semi-structured interviews, observations and documents are the main sources for
data collection. The following are the reasons for HCIS failure:
i. Scope creep: Reverting to the manual system resulted in focusing on not strategic goals
but immediate organizational problems and daily business demands
ii. Lack of top management support and knowledge: Too much responsibility and level of
decision making of consulting company and too little managerial responsibility for its
employees led to ineffective use of the HCIS system and employee’s lack of knowledge
iii. Lack of change management: Reverting to the manual system in the firm because of
reducing employees’ numbers
iv. Lack of communication support and response: No formal communication.
v. Lack of performance measurement: No comprehensive performance measurement.
vi. Propensity to isolate IT from business affairs: Lack of alignment between IT and business
strategy resulted in the ineffective use of HCIS.

2.10.6.3 AML (Kholeif et al., 2008 and 2007)

AML is a leading international company in the electronics industry based in the Netherlands.
HCIS implementation in AML faced some unique challenges, viz:
i. The new rules built into HCIS software were incompatible with the established ways of
thinking and the norms of behaviour embedded in the existing accounting routines.
ii. The lack of expertise on the part of both the HCIS Project Manager and external IT
consultants led to mistrust.
iii. Securing legitimacy for the HCIS project was successful but there was lack of financial
and technical support from the holding company.
iv. Scarce financial resources due to continuous losses.
v. Lack of capacity to cope with HCIS on the part of all organizational members at all levels
due to lack of training.

2.10.6.4 Bottler Company (Barker and Frolick, 2013)

The Bottler Company is one of the largest independent bottlers in the soft drink industry in the
US. The problems were:

35
 i. Improper employee involvement and lack of training: the project team members were
barely trained in their day-to-day job activities, and they were not experts in the business
practices within their department.
ii. Inconsistent management support: certain project leaders and upper management did not
see the importance of sharing certain aspects of the project across modules and
departments. In additions, the lack of faith in the consultants’ advice made
implementation process even more challenging.
iii. Lack of communication: Communication issues, including employee encouragement
concerns, added to the burden of the human resources problem. In additions, due to
breakdowns in the channels of communication and the lack of management support,
many constituents including high-level employees resigned.
iv. Lack of recognition of lower- level employees: In addition to the lack of expertise,
employees were not provided assistance when it came to keeping up with their regular
job duties.
v. Uneasiness of the system: the system was not easy to use.

2.10.6.5 Implications
The factors identified in each case above validate the model. For the case of the city of El Paso,
the main failure reasons are organizational readiness such as top management support, HR
issues, and the lack of employees’ skills, knowledge, and experience. The Comp Group-Middle
Eastern manufacturer case showed all factors in our model and fit our model very well (Hwang,
2006). The need for globalization and the need for customer focused business are two main
perceived strategic values; growing competition is an external pressure for adopting HCIS. The
organization readiness factors are lack of top management support, knowledge, change
management, communication, commitment, support, response, performance measurement,
propensity to isolate IT from business affairs (Hwang, 2006). Perceived usefulness includes need
for quality improvement, shorten lead time, and eliminate overlapping activities. One example of
perceived ease of use is outdated IT infrastructure. The SMHK, AML and the Bottlers cases
mainly focus on organizational readiness and perceived ease of use. Leadership, communication,
and HR issues are three critical elements related with organizational readiness in these cases. The
compatible system in SMTH practices is the biggest problem related ease of use.

36
The proposed model identifies key constructs that are likely to influence HCIS adoption
intention and explores the relationship among these constructs. From the theoretical perspective,
each construct in the model has been identified and behavioural patterns of HCIS usage intention
are developed (Hwang, 2006). The model broadens the previous studies in HCIS context by
integrating several existing theoretical models into one theoretical framework. It incorporated
antecedents which include perceived strategic value, external pressure or support, organizational
readiness, perceived ease of use, and perceived usefulness (Hwang, 2006). It would allow
businesses to have better understanding of adoption criteria.

2.11 Empirical literature

Al-Mobaideen, Allahawiah and Basioni (2013) conducted a study that examined the key factors
that have impact on the successful adoption of Human Resource Information System (HRIS)
within the Aqaba Special Economic Zone Authority (ASEZA) in Jordan. In order to accomplish
the purpose of the study, four critical factors were explored, which were; firstly, TAM Model
which encompasses Perceived Ease of Use (PEOU) and Perceived Usefulness (PU) [see herein
the Integrated HCIS Adoption Intention Model on pages 31-34], secondly, Information
Technology Infrastructure (ITI), thirdly, Top Management Support (TMS) and finally, Individual
Experience with Computer (IEC). The research model was applied to collect data from the
questionnaires answered by 45 users of HRIS as a source of primary data, based on a
convenience sample. In addition, the results were analyzed by utilizing the Statistical Package for
Social Software (SPSS) this is also the case for this study as the researcher will also utilize SPSS
to analyse study findings and results. Furthermore, the findings were analyzed by multiple
Regression analysis which subsequently indicated that all research variables have a significant
relationship with the successful adoption of HRIS. This was also the case with this study as
regression analysis will be used in Chapter 4 to analyse the variables of HCIS that influence
HCM. The findings indicated that IT infrastructure has a positive and significant effect on the
successful adoption of HRIS, whereas there has been no significant effect of PU, PEOU, TMS
and IEC on the successful adoption of HRIS. Finally, the results indicated that there are no
significant statistical differences of demographic characteristics on HRIS adoption.

Another study was conducted by Mohamed (2006) aimed at identifying the perceived factors

37
affecting the implementation of Human Resource Information System at Kenya Revenue
Authority. The researcher adopted a descriptive survey design with the population consisting of
Kenya Revenue Authority employees based in Nairobi. A stratified random method of sampling
was used. The study collected primary data through a questionnaire and the respondents were
drawn from Kenya Revenue Authority staff based in Nairobi. The data was analyzed using
descriptive statistics including frequencies tables, percentages, mean scores, standard deviation,
ranking orders and pie charts. The respondents agreed to the fact that top management support,
effective communication, training, support of ICT department, support of HR department and
user involvement influences the implementation of HRIS at KRA. The study recommended the
allocation of adequate resources by management for the implementation and maintenance of the
HRIS. Communication between managers and employees needs to be encouraged. Furthermore,
HR managers should play a proactive role to support HRIS implementation in their
organizations. There were similarities between Mohamed’s (2006) study and this study in that
they both analysed revenue authorities namely, Kenya Revenue Authority and Zimbabwe
Revenue Authority; and that primary data was collected through questionnaires; they both also
used descriptive statistics to analyse data for their studies as well as the similarities of some
HCIS variables identified that influence; namely top management support, effective
communication, training, support of ICT department, support of HR department and user
involvement.

Long (2009) also conducted a study that examined HR function, HR function transformation and
Human Resource Information Technology (HRIT), by investigating the role of HRIT playing in
HR function transformation process, and the interrelationship between them. The research
consisted of two parts: a theoretical review and a meta-analysis of empirical data. For both parts,
all the research data came from peer-review academic papers, and 43 of them were used. In the
theoretical chapter, HR function, HR function transformation and HRIT were conceptualized.
Firstly, he discovered that the HR professional is moving from operational level to strategic and
managerial levels. Line managers have taken an important part of HR function. Secondly, HR
function transformation is a business process that changes the HR tasks and expands the
involvement of actors in HR function, and that makes HRM concentrate more on strategic,
value-creating activities for the long-term business objective. Thirdly, HRIT is supporting and

38
forcing the traditional HR function to transform, and changes the way of management. However,
HR professionals need to pay attention to deal with the drawbacks brought by HRIT, which
might lead to negative effects on both social interaction and information accuracy. In the second
part, the analysis of empirical evidence provides insight into the practice role of HRIT in HR
transformation. The empirical evidence shows that the devolution and decentralization of HR
function is leading to role dissonance between HR professionals and line managers, and the HR
professionals do not always focus on strategic issue but still put attention to daily managerial and
operational tasks. On the other hand, the HRIT is considered as indispensable parts on supporting
HR function transformation. It is because HRIT provides the platform and opportunity for HR
function transformation and shifts the traditional HR function to technology-based new function.
In conclusion, this research reveals that HRIT not only is considered to support HR professionals
to be strategy partner of business but also boosts a wide level of participation into HR practices.
Academic researches consider the usage of HRIT focuses on supporting strategic HRM, but the
analysis of practical evidences shows that most companies are still in middle of the
transformation process where HRIT is shifting HR function from transaction activities to
strategic ones.

2.12 Knowledge gaps

The studies above did not provide literature on the relationship between the implementation of
HCIS and the effectiveness and efficiency of HCM in Zimbabwean companies; hence the
researcher believes this study will fill this research gap by conducting such a study locally. The
main knowledge gaps established in the study by Long (2009) were that it was mainly gathered
from secondary data as he mainly relied on peer-review academic papers for his results and
findings. Furthermore, unlike in this research, Long’s study has neither descriptive analysis nor
hypothesis testing to establish objectively whether there was a relationship between the
implementation of HCIS and the effectiveness and efficiency of HCM.

Al-Mobaideen, Allahawiah and Basioni (2013) and Mahommed (2006) conducted their studies
only focusing on one organisation but this study broadened its scope by examining the key
factors that impact on the successful adoption of Human Resource Information System (HRIS)

39
on three distinct organisations. Furthermore this study analyses state owned organisations whilst
Al-Mobaideen, Allahawiah and Basioni (2013) looked at a private-owned entity of which these
business formations may be affected by different factors.

From the facts gathered from the literature review, the researcher observed knowledge gaps from
authors and the models used in this study as outlined below in table 2.3 and table 2.4:
Table 2.3 Knowledge gaps from the authors
Author Contribution Gap How this study will
contribute to the gap
Noe et al (2007) Noe et al. (2007), The definition lacks As such the contribution
described HCIS as a depth as HCIS is not a should have touched on
computer system used mere computer system how HCIS could have
to acquire, store, which only deals with enhanced the operations
manipulate, analyze, HCM but rather should of other functions like
retrieve, and distribute be integrated with other finance, administration,
information related to systems at the marketing and not
human capital. organisation for merely looking at the
example finance and HCM function.
administration for the
payroll function.
Beckers and Bsat (2012) According to Beckers However, HCIS should In this study I will be
and Bsat (2012) HCIS not only involve guided by the objectives
involves a set of internally designed and in evaluating whether
internally consistent implemented policies implementation of HCIS
policies and practices and/or practices but will entail lead to
designed and should also adopt effective HCM at an
implemented to ensure externally sought organisation. There will
that a firm's human policies and practices be input from three state
capital contribute to the from other organisations owned enterprises on
achievement of its of the same nature and how they implemented
business objectives. characteristics which their HCIS as well as
have already the current performance
successfully of HCM at their
implemented HCIS so organisations establish
as to ensure that theirs is the internal and external
also successfully policies and practices
implemented. adopted by these
Furthermore, it is not organisations.
only a matter of the
organisation’s HCIS
contributing to the

40
 achievement of the
firm’s objectives but
also the objectives of
the organisation should
be integrated into the
HCIS when
implementing or
developing it.
Source: Researcher (2015)
From table 2.3 above the study will make the following contributions:
• As such the contribution should have touched on how HCIS could have enhanced the
operations of other functions like finance, administration, marketing and not merely
looking at the HCM function.
• In this study I will be guided by the objectives in evaluating whether implementation of
HCIS will in turn lead to effective HCM at an organisation. There will be input from
three state owned enterprises on how they implemented their HCIS as well as the current
performance of HCM at their organisations establish the internal and external policies
and practices adopted by these organisations.

41
Table 2.4 Knowledge gap for models
Subject Model Gaps in literature Discussions
Adoption Theory of This model lacks This model can be used in conjunction with the
of HCIS reasoned sufficient explanatory technology acceptance model so that they can
action model scope as it excludes other balance each model’s lack or limited
behaviours that could explanatory scope/power on the adoption
affect an individual from intention of an individual.
taking a ‘reasonable’
action.
The model excludes an Certain exceptions for particular situations
analysis of a scenario could be included to this model. It could be
where an individual stated or rephrased that a behavioural intention
evidences spontaneous, measure will predict the performance of any
impulsive, habitual, voluntary act, except the intention measure is
addictive, scripted or not corresponding to the behavioural standards
mindless behaviour. in terms of action, target, time frame and/or
specification.

Technology The model is perceived to Tests will be done in this study to establish
acceptance be easy to use however it whether there is a relationship between the
model is not a determinant of successful implementation of HCIS would
attitude and usage bring about effectiveness of HCM. This will be
intention. assisted by analyzing the critical success
factors needed for HCIS implementation as
well as the reasons why individuals reverted
back to manual systems.
It is perceived usefulness This model can be used in conjunction with the
is not fully explained or technology acceptance model so that they can
defined because it lacks balance each model’s lack or limited
practical value explanatory scope/power on the adoption
intention of an individual.
Source: Researcher (2015)

2.13 Conceptual framework

The preceding discussions in the preceding literature review assisted the researcher to develop a
conceptual framework which highlighted the context of understanding issues as they relate to the
impact of HCIS on the effectiveness of HCM at an organisation. Variable in the study were
identified as follows:

42
The dependent variable was effective HCM characterized by indicators like enhanced decision
making, communication and data security, reduction in expenditure, building strong relationships
within the organisation, achievement of company objectives and competitive advantage for the
organisation; is dependent on the successful implementation of HCIS which relies on
independent variables. These independent variable include critical success factors like top
management support, training, effective communication and support of ICT and HCM
departments; reasons for reverting to manual system like lack of understanding HCIS, comfort
with status quo and fear of the unknown; as well as critical failure factors like lack of proper
strategy, setting unrealistic objectives and failure to change. Given facts gathered in the literature
review the researcher came up with following conceptual framework:
Independent variables Dependent variable

Critical success
factors e.g
-Top management
support
-Training
-Effective
communication
-Support of ICT and
Effective Human
HCM departments
Capital Management
i.e.
-Enhanced decision
making,
Successful communication and
Factors hindering implementation of data security
successful HCIS -Reduction in
implementation of expenditure
HCIS e.g. -Building strong
-Lack of relationships within
understanding HCIS the organisation
-Comfort with status -Achievement
quo company objectives
-Fear of the unknown -Competitive
Fear of job loss advantage for the
-Lack of proper organisation
strategy
-Setting unrealistic Figure 2.2 Conceptual framework (Source-Researcher 2015)
objectives
-Resistance to change

43
2.14 Chapter conclusion

This chapter reviewed literature relating to human capital information system. The discussion of
what human capital management and human capital information system is show that they are
essential to the success of an organisation, if implemented effectively. Furthermore, the chapter
highlighted that there are critical success factors of HCIS implementation which points to the
reasons why staff reverted to manual system after the implementation of HCIS. The chapter also
established from literature factors hindering the successful implementation of HCIS. The chapter
then ends with a discussion of literature on the critical failure factors of HCIS implementation
and an analysis of the models of HCIS adoption. The next chapter shall focus on research
methodology used in conducting this study.

44
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction
The chapter presents the methodology and research design used for this study. It also highlights
and reveals the population, sampling procedures, sampling techniques, data collection,
presentation of the data, method used for empirical data analysis used in this study.

3.2 Research design

According to Ghoshi (2002) a research design is a plan of the proposed research work as well as
arrangement of collection and analysis conditions of the data in a way that aims to combine
relevance to the purpose of the research whilst economizing in procedure. In addition Converse
and Presser (1986) also highlight that a research design can be defined as an orderly and
systematic approach in the collection of data to ensure that information is accomplished.
Furthermore, Yin (1994) defines research design as logical steps required by a researcher to be
followed in answering their research questions hence it would be an action plan the research
would use to navigate from one position to the other during their accomplishment of the study.

Fowler (1984) states that business research begins with asking questions leading to the learning,
explanation, prediction, experimentation, observation and consequently advancement of the
limits of the accumulated knowledge up to date. According to Love (2002), it can be generalized
that any research assignment and its conclusions are defined and judged by the particular
combination of theoretical and proximal factors that shape them because they are founded on
researchers' worldviews, human values, theories, and data gathering methods. Love (2002)
expands this assertion by saying that research processes and outcomes depend on researchers'
subjective human cognitive-affective processes interacting with the assumptions that underpin
their use of theories and data gathering methods and techniques.

45
Ghoshi (2002) recommends the use of correct methodology in research and asserts that if a
research follows the wrong method then systematic knowledge or the truth cannot be ultimately
found out. Ghoshi (2002, p. 25) argues that unless the right methodology is followed thoughts
cannot be arranged in the correct order.

3.2.1 Research Philosophy

According to Howard and Sharp (1983) research philosophy is the process of circumventing
through methodical processes in an effort to increase one's body of knowledge as well as to
others, by discovery of non-trivial facts and insights. Furthermore, Saunders, Lewis and
Thornhill (2009) postulate that research approaches are mainly divided into two that is,
phenomenology or positivism also known as qualitative and quantitative respectively.

Bless and Higson-Smith (1995) define positivism as the approach which involves working with a
social reality that is observable and furthermore, its end product can be considered to be law-like
generalizations just as those produced by natural scientists or physical scientists. They also claim
that the researcher is independent of the setting as they are neither affect nor are affected by the
subject of the research.

On the other hand, phenomenological philosophy according to Neville (2005) argues that the
behaviour of humans cannot be easily measured as phenomena in the natural sciences. An
example he gave was that human behaviour like inner thought processes which he argued were
not always observable.

However in this study the researcher chooses the positivist approach as he believes that this
approach has got a characteristic intention to establish the facts and causes of any social
phenomena in a systematic way like is the case in this study in line with Neville (2005) as well.
According to Saunders et al (2009) this approach also assists in deducing the study hypothesis as
well as in cases where the research is scientific in nature. In addition Easterby-Smith, Thorpe and
Lowe (2000) in support to the use of positivism approach argue that the social world exists
externally and independently hence it should be measured by objective methods whereby similar
results can be reproduced if the same study was carried out in similar conditions. The researcher
administered questionnaires to management and staff of TelOne, ZETDC and ZIMRA so as to

46
evaluate the impact of information technology on human capital management and provide
rational explanation for outcomes.

3.2.2 Research approaches

A research can have elements based on non-empirical or empirical approach and in some cases it
could be combination of both (Leedy, 1992). He also adds that the elements that that form the
basis of the empirical approach are deductive and inductive; objective and subjective; and
applied and basic.

According to Hussey and Hussey (1997) the deductive research approach is the research work
were a theoretical and conceptual structure are developed and it is then evaluated by empirical
observation and then particular instances are deduced from general instances. On the other hand
Saunders et al (2009) argues that unlike deductive research approach inductive approach is a
research were a theory is developed from the observation of empirical reality and general
inferences are induced from given circumstances.

In the case of subjectivity and objectivity Easterby-Smith et al. (2000) postulate that under
objectivity that for the results produced to be considered valid the researcher should maintain
complete independence as objectivity points to the degree of independence in the execution of
the data gathering whilst subjectivity relates to the involvement in or influencing the research
outcome. Therefore, the phenomenological approach is viewed as subjective whilst the
positivistic approach is more objective in nature.

Neville (2005) states that the main reason for a basic research is the pursuit of enhancement of
knowledge. He also adds that its focus is on the examination, development, refinement and
verification of the methods of research, their procedures techniques as well as tools that would
form the research methodology body. According to Saunders et al (2009) applied research
constitutes the majority of the research in the social sciences and it involves the research
methods and techniques which form the body of research methodology applied in the collection
of data and information about various aspects of a problem or situation. According to Neville
(2005) applied research is conceived in a way that its findings can be applied to a particular
problem or situation. Therefore this study is an applied research which aims to establish the

47
impact of HCIS on the performance of TelOne, ZETDC and ZIMRA. Furthermore, the
researcher adopted the objective research approach as the study is a quantitative one.

3.2.3 Research Strategies / Methods

Research strategies or methods are the methodology used to carry out the study. A research
strategy is the overall approach to the research process. According to Phiri (2005), a research
strategy must show evidence that a particular research strategy is being used after having careful
analysis by the researcher. The first thing that the researcher should do is to determine the
research paradigm to use then determine the research strategy.

In this study, the research chooses survey as the research strategy used. According to Canhao
(2000) a survey is defined as a whereby a sample of individuals or subjects is pulled from a
population and studied to make inferences about the population. He further adds that there a
survey has got two types which are descriptive survey and analytical survey. The descriptive
survey is concerned with establishing and counting a specific population's frequency, either at
one particular point or at various points in time for comparison and examples of such surveys are
political elections even though this form of survey is frequently used in the form of attitude
surveys in business research. On the other hand analytical survey is concerned with determining
whether there is any relationship between different variables as well as identifying the
independent, extraneous and dependent variables in the study. This study used an analytical
survey as it seeks to determine whether there is any relationship between the implementation of
HCIS and the effectiveness of HCM at TelOne, ZIMRA and ZETDC.

3.3 Population
Wegner (2005) defined population as a set of entities from which statistical inferences are drawn.
A population is a collection and/or totality of all elements under investigation and is used to refer
to a set of potential values including not only cases actually observed but those which are
potentially observable. According to Canhao (2000) a survey is defined as a whereby a sample of
individuals or subjects is pulled from a population and studied to make inferences about the
population. He further adds that there a survey has got two types which are descriptive survey
and analytical survey. The descriptive survey is concerned with establishing and counting a
specific population's frequency, either at one particular point or at various points in time for

48
 comparison and examples of such surveys are political elections even though this form of survey
is frequently used in the form of attitude surveys in business research. On the other hand
analytical survey is concerned with determining whether there is any relationship between
different variables as well as identifying the independent, extraneous and dependent variables in
the study. The researcher adapted the Krejcie and Morgan (1970) table to select the appropriate
sample size from the total population of 10 600 management and staff at ZIMRA, ZETDC and
TelOne at 95% confidence level for this study. The results are shown in the table 3.1 below:
Table 3.1 Population and Sample size for the study
ZIMRA
Description Population Sample size
Management 85 3
HR staff 46 20
IT staff 33 15
Other staff 1836 27
Total 2000 69
ZETDC
Management 170 6
HR staff 58 20
IT staff 40 15
Other staff 6132 178
Total 6400 223
TelOne
Management 103 3
HR staff 52 20
IT staff 41 39
Other staff 2004 54
Total 2200 81
Adapted from Krajcie and Morgan (1970)

The researcher used the simple random sampling method in this study in selecting all the
potential respondents. Wegner (2006) and Ghoshi (2002) state that this method ensures that there

49
was an equal opportunity for each subject in the population of being included in the sample.
Furthermore, this sampling method has the advantage of eliminating bias as well as ensuring that
the sample chosen is representative.

Another sampling method used by the researcher was cluster sampling. Zikmund (1997)
postulates that this sampling method has the advantage of being economic whilst also retaining
the characteristics of a random sample. According to Saunders et al (2009) in this method the
population is divided into groups or clusters with similar profiles and then within the clusters the
sample are randomly selected to provide a representative sample from the population. In this
study the clusters were Human Resources staff, Information Technology staff, management and
other staff.

To a lesser extent, convenience sampling was used in selecting other staff and management. In
convenience sampling method the sample is drawn for the researcher's convenience (Canhao.,
2000).In this case the researcher selected other staff and management who were located where it
was convenient to the researcher. For ZETDC it was the ZETDC Head Office and Megawatt
centre and Gweru Regional Offices, whilst for ZIMRA it was ZIMRA head office stationed at
ZB Centre, Kurima House station and Airport station, whilst for TelOne centres will comprise of
its Head Office at Runhare House, Zimpost House (Main Post Office) station and Belvedere
TelOne station. These stations were chosen because they were convenient to the researcher in
accessing while still being effective because most users of HCIS operate from the stations.

3.4 Data sources

The two types of data sources are primary and secondary data (Kwesu, Nyatanga and Zhanje.,
2002). According to Katsande (2010) methods of data collection may vary from style of
management to the organisational culture.
3.4.1 Primary data sources
Primary data is data that is gathered and assembled for the particular research being undertaken
(Zikmund, 1997). This view is in agreement with Parasuraman (1991) who adds that primary
data is collected specifically for a particular project. However, primary data is expensive to
collect but yet important as it is essential in formulating structured or unstructured questions that
address the study problem or study topic. According to Stromgren (2007) primary data is the data

50
recorded during the research period which addresses directly the purpose of the study. In this
study the researcher mainly relied on primary data which he collected through questionnaires
administered to management and staff of TelOne, ZETDC and ZIMRA.
3.4.2 Secondary data sources
Zikmund (1997) states that secondary data is mostly historical data which would have been
collected from previous studies and projects prior to the current project being undertaken.
However, Parasuraman (1991) argues that secondary data is less expensive to collect as
compared to primary data and it is gathered from various sources for example websites,
textbooks, journals and company reports. Therefore, in this study the researcher reviewed
secondary data sourced from TelOne, ZIMRA and ZETDC websites as well as their company's
annual reports and charters which were accessed from their libraries, internet, publications and
strategic plan documents duly noted as references in appendix A at the end of this document.

3.5 Data collection instruments

The researcher used questionnaires (see Annexure C) as his main data collection instrument.
According to Kwesu, Nyatanga and Zhanje (2002) a questionnaire is a data collection instrument
that has a list of carefully selected and tested structured questions used in an effort to elicit
reliable responses from a sample that has been chosen for that study. Furthermore, Kotler and
Keller (2005) add that this data instrument is considered to be the simplest, most common and
flexible data collection instrument for collecting primary data. Some of the reasons why the
researcher used the questionnaire as the main data collection instrument is because it provides
the respondents time to assess their responses with influence or interference and furthermore,
Fraenkel and Wallen (1996) also highlight that questionnaires can also be administered
simultaneously to a larger population. Other advantages to the use of questionnaires were that of
uniformity as all respondents’ receive identical sets of questions as well as that they permit
anonymity hence increasing the possibility of a high response rate (Saunders et al., 2009).

On the other hand, the disadvantages of questionnaires are that delays in responses as well as
return of incomplete questionnaires. Furthermore, the questionnaires should be designed as
simple as possible so as to improve response rate.

51
Sets of questionnaires were distributed to IT staff and human resources staff which use the
system, including managers as well as other staff. These questionnaires gathered specific facts
and information related to the implementation and use of HCIS. The general system users,
managers, IT and HRM staff helped to give information on the HCIS quality and performance as
well as its impact on HRM at the three organisations under investigation. This information will
then be used to measure if the implementation of HCIS has been effective on HCM, with a view
to proffer ideas on how to bring the system to effective use for organisational growth. The
researcher will use Likert scale in the questionnaire. Usually, a Likert scale has 5-scale ratings
but the researcher will use 4-scale rating Likert scale with possible responses ranging from
disagree strongly, disagree, agree and strongly agree, avoiding “don’t know”. This is to force
people to make a choice as people have a tendency of not wanting to commit by choosing don’t
know.

The questionnaires sent out were initially coded and sorted in such a way that they could be
easily identified as to which organisation they came from. The codes were Z1 for ZETDC, Z2 for
ZIMRA and T3 for TelOne. Furthermore, a pilot study was done to ensure reliability of the
research results and to this effect, researcher took the questionnaires and gave them to 10 of his
randomly selected peer classmates for them to complete and the weaknesses noted by these
students were corrected before administering the questionnaires to the research participants.

3.6 Data collection procedure and administration

The researcher had research assistants who helped him to personally distribute the questionnaires
to the three state owned enterprises. A letter of introduction (see Annexure B) was drafted to
accompany the questionnaire informing research participants about the purpose of research. This
letter helped the researcher to gain co-operation of the respondents and that they do not link
researchers to industrial spies. Some of the questionnaires for other staff were distributed at a
first come first serve basis at the receptions for ZETDC Head Office and Megawatt centre and
Gweru Regional Offices, ZIMRA head office stationed at ZB Centre, Kurima House station and
Airport station, and TelOne Head Office at Runhare House, Zimpost House (Main Post Office)
station and Belvedere TelOne station. Upon completion, the researcher and his assistants would

52
go around collecting the questionnaires. For management and other technical staff,
questionnaires were personally delivered to their offices through the drop and pick method.

3.7 Data presentation and analysis techniques

The information for this study was presented using tables in the form of cross-tabulation and
simple data table as well as bar graphs and pie charts. These facilitated easy comparison of the
data as well as clarity of the situation. Once the fieldwork has been completed, the data must be
converted into a format that will answer the decision maker's questions, (Zikmund, 1997). A data
entry template was designed by the researcher in which he captured all the data from the
questionnaires which had been returned to him by the respondents. Afterwards the researcher
cleaned the data to remove inconsistency using SPSS version 21 by running descriptive
frequency tables, Cronbach Alpha tests as well as normality tests of the variables of the study.
Repetitive and inconsistent questions were filtered out and discarded; moreover, the data was
interpreted using statistical principles like frequencies and percentages. Furthermore, correlation
analysis testing was undertaken to establish the relationship between the implementation of
HCIS and its effect on HRM performance at TelOne, ZIMRA and ZETDC. Furthermore,
regression tests were conducted to test the hypothesis stated in chapter 1 which is stated below:

H0: The successful implementation of HCIS at ZETDC; ZIMRA and TelOne has no significant
impact to HCM in the organisations.
H1: The successful implementation of HCIS at ZETDC; ZIMRA and TelOne will lead
to a more effective HCM in the organisations.

The independent variables as highlighted in chapter 2 were the critical success factors (top
management support, training, effective communication, support of ICT and HCM departments),
reasons for reverting to manual system (fear of the unknown, comfort with status quo) and
critical failure factors (lack of proper strategy, failure to change, setting unrealistic objectives)
whilst the dependent variable was effectiveness of human capital management at the state owned
enterprises (enhanced decision making, reduction in expenditure, data security and competitive
advantage for the organisation). A comparative analysis will be conducted to analyse the views
amongst the management, IT staff, HCM staff and other staff within their individual

53
organisations as well as a comparison across the three organisations. The findings are laid out in
chapter four, together with their detailed discussion.

3.8 Credibility analysis

The major issue in research design is the credibility of the research findings, whether the
evidence and conclusions stand up to the closest scrutiny (Raimond, 1993, p. 55). To mitigate the
possibility of getting wrong answers, scientific methods was applied as summarized by Rogers
(1961) and cited by Raimond (1993, p. 55) ‘scientific methodology needs to be seen for what it
truly is, a way of preventing one from deceiving himself in regard to creatively formed
subjective hunches which have developed out of the relationship between one and his material.'
To reduce the possibility of getting the answer wrong, attention was focused on research design
with emphasis on reliability and validity. Therefore in ensuring reliability of the sample for this
study the researcher used the Krajcie and Morgan model.

Since the researcher used questionnaires, the major threat to reliability as stated by Robson
(2002) were participant error or subject error and participant bias or subject bias. The researcher
mitigated participant error by ensuring that questionnaires are administered during mid-week
when TelOne, ZETDC and ZIMRA staff did not have weekend hangover experienced on
Mondays or weekend excitement experienced on Fridays. Subject or participant bias is very
common in parastatals due to authoritarian management style. Therefore, to mitigate participant
bias or subject bias, anonymity of respondents to questionnaires was used by the researcher.
There were no names or number to questionnaires to associate with the respondent. Care was
also taken during the analysis of data to ensure that data was telling it like it was then. The
researcher conducted a Cronbach test on the questionnaires so as to ensure consistency. The
results are shown in the table 3.2 below:
Table 3.2 Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on No. of Items
Standardized Items
.921 .926 23

The results shown in the table are above 0.7 threshold therefore reliability was ensured in this
study.

54
The researcher also pre-tested the questionnaire by distributing 5 questionnaires per each
organisation participating in this study to ensure that the questionnaire had no errors and were
not cumbersome to complete.

3.9 Limitations of the study

Limitations of this study centered primarily on time and cost constraints. The given time for the
study was rather short and this made the researcher to do his work hurriedly thereby
compromising quality of the data. Secondly, the use of closed ended questions was a problem
because there was no room to solicit for more information hence, the data lacked some detail.
Moreover, the questionnaire was made short in order to encourage respondents to complete them.
In the same vein, some respondents were not cooperative, leaving out some of the questions.

The data was collected using a survey and therefore, the inferences drawn could only be peculiar
to TelOne, ZIMRA and ZETDC which are all Zimbabwean parastatals consequently making it
difficult to generalize for the whole business sector in Zimbabwe.

3.10 Issues of ethical concern

The researcher approached management of the three organisations understudy and secured
authority to go ahead with the investigations (see annexure D). These letters helped in restoring
confidence amongst participants proving that their participation was voluntary.

3.11 Chapter Summary

The chapter presented the research methodology. In this study, the analytical survey was
considered as the appropriate method. The questionnaire was regarded as the best methods to
collect data from respondents relative to other methods. This chapter critically looked at the
research methodology and the corresponding justification of the methodology adopted. This
study adopted the positivist research approach with the questionnaire as the data collection tool.
The next chapter will present the research findings.

55
 CHAPTER 4

DATA, PRESENTATION AND INTERPRETATION

4.1 Introduction
This chapter presents the results of the study, make an analysis as well as provide an
interpretation of those results. This was done in line with the objectives of the study as well as
relating them to literature reviewed in this study.

4.2 Response rate

The researcher compiled the response rate for this study and the results are illustrated in table
4.1:
Table 4.1 Response rate
Type of respondent Number of Number of Response rate
questionnaires sent questionnaires
collected
Management 12 4 33.3%
HCM Department 60 40 66.6%
IT Department 69 40 57.9%
Other staff 259 146 56.3%
Total 400 230 57.5%

Table 4.1 shows that out of the 400 questionnaires distributed by the researcher 230 were
collected which meant that the response rate was 57.5%. According to Babbie (1998) and also
cited by Millar and Dillman (2011) a prudent and acceptable response rate for a questionnaire
survey should be around 50% to 80% therefore this study’s response rate is within the prudent
and acceptable level.

Table 4.1 also shows that management’s response rate was the lowest at 33.3% with only 4
questionnaires being collected from an initial 12 distributed. On the other hand the highest
response rate came from the HCM department with 66.6%. This could be because they felt that
this study addressed their department as well as their concerns. However, table 4.1 shows that the
study involved all the stakeholders involved with the implementation and use of HCIS at
ZETDC, ZIMRA and TelOne responses were received from management, HCM department

56
staff, IT department staff as well as other staff. This also shows that these results were not biased
towards a certain set of stakeholders.
4.2.1 Respondents’ experience

Figure 4.1 Length of service at the organisation

Although ZIMRA, TelOne and ZETDC shifted from using a manual system in human capital
management (HCM) to an automated HCIS system at different periods, HCIS has been
introduced whilst the majority of employees presently employed were already in the system.
ZIMRA implemented the SAP Human Capital Management module in 2004, TelOne in 2007 and
ZETDC automated in 2012.

Figure 4.1 above shows that the majority (67%) of the respondents had worked at least more than
10 years at their organisations hence they had invaluable knowledge and experience with HCIS.
This implies that the respondents were knowledgeable on the issue of the use of HCIS at
ZETDC, ZIMRA and TelOne as well as its impact on human capital management.

57
4.3 Knowledge of HCIS

Figure 4.2 Whether respondents knew about HCIS

Based on figure 4.2 above almost all the respondents had knowledge about HCIS except for only
2% however there were some who strongly agreed and others only agreed which shows they had
varied confidence in their knowledge of the system.
Table 4.2 Whether respondents knew about HCIS
Knowledge of HCIS Scale
Strongly agree Agree Disagree Strongly disagree
Management 0%
0% 100% 0%
HCM staff 0%
72% 28% 0%
IT staff 0%
100% 0% 0%
Other staff 0%
0% 68% 32%

As further analysis of what is illustrated in figure 4.2 table 4.2 shows which type of respondents
stated how much they knew about HCIS. The results show that all the IT staff strongly agreed
they understood HCIS very well whilst 72% of HCM staff also strongly agreed that they knew it
very well. However, there were 28% of HCM staff only agreed that they knew HCIS very well
and they did not have a conviction to strongly agree which could show that they doubt their
knowledge of the system which they are expected to use daily.

58
4.4 Whether HCIS has got an impact on HCM at ZETDC, ZIMRA and TelOne
Table 4.3 Organisation * HCIS impact on HCM Cross-tabulation
HCIS impact on HCM Total
Disagree Disagree Agree Agree
strongly strongly
Count 9 37 25 19 90
ZETDC % within 10.0% 41.1% 27.8% 21.1% 100.0%
Organisation
Count 0 18 30 3 51
Organisation ZIMRA % within 0.0% 35.3% 58.8% 5.9% 100.0%
Organisation
Count 1 45 35 8 89
TelOne % within 1.1% 50.6% 39.3% 9.0% 100.0%
Organisation
Count 10 100 90 30 230
Total % within 4.3% 43.5% 39.1% 13.0% 100.0%
Organisation
Based on table 4.3 above 43.5% of all the respondents disagree that the current HCIS has got an
impact on human capital management at their organisation and an additional 4.3% of the
respondents disagreed strongly. However, 39.1% of the respondents agree that the current HCIS
has got an impact on human capital management at their organisation and an additional 13%
strongly agree. This indicates that the cumulative majority of the respondents (52.1%) either
agree or agree strongly that the current HCIS at their organisation has got an impact on human
capital management at their organisation on the other hand majority of the respondents (43.5%)
stated that they disagree the current HCIS at their organisation has got an impact on human
capital management at their organisation. This indicates that although most of the respondents
concur that the current HCIS at their organisation has got an impact on human capital
management in their organisation there was still a significant group of individuals who disagree.

The table also shows that 41.1% from ZETDC disagree that the current HCIS has got an impact
on human capital management at their organisation and a further majority of respondents
(50.6%) from TelOne also disagree that the current HCIS has got an impact on human capital
management at their organisation. On the other hand the majority of respondents (58.8%) from
ZIMRA agree that the current HCIS has got an impact on human capital management at their
organisation. This indicates that of the three organisations only ZIMRA believes that the current
HCIS has got an impact on human capital management at their organisation whilst TelOne and

59
ZETDC believe that their current HCIS at their organisations have not had the desired impact on
human capital management.

4.5 Whether ZETDC, ZIMRA and TelOne have benefitted significantly from HCIS

Table 4.4 Organisation * Benefited from HCIS Cross-tabulation

Benefited from HCIS Total
Disagree Disagree Agree Agree
strongly strongly
Count 9 42 35 4 90
ZETDC % within 10.0% 46.7% 38.9% 4.4% 100.0%
Organisation
Count 0 28 22 1 51
Organisation ZIMRA % within 0.0% 54.9% 43.1% 2.0% 100.0%
Organisation
Count 1 60 23 5 89
TelOne % within 1.1% 67.4% 25.8% 5.6% 100.0%
Organisation
Count 10 130 80 10 230
Total % within 4.3% 56.5% 34.8% 4.3% 100.0%
Organisation

Table 4.4 above shows that 56.5% of the respondents disagree that their organizations have
benefitted significantly from HCIS. Based on the table above the organisation with the most
respondents who disagree that their organization has benefitted significantly from HCIS was
TelOne with 67.4% followed by ZIMRA with 54.9% and ZETDC with 46.7% of their
organisation. However, a cumulative majority of 56.7% of the respondents from ZETDC either
disagrees or disagree strongly that their organizations have benefitted significantly from HCIS.
This indicates that all the organisations concur that their organizations have not benefitted
significantly from HCIS.

On the other hand in the previous section ZIMRA respondents had stated that the current HCIS
has got an impact on human capital management at their organisation whilst in this section they
believe that their organization has not benefitted significantly from HCIS. This could mean that
although respondents at ZIMRA believe that the current HCIS has got an impact on human
capital management at their organisation they however acknowledge that the organisation has not

60
benefitted significantly from the HCIS.

4.6 Benefits of HCIS

Figure 4.3 Benefits of HCIS

Figure 4.3 above shows the benefits of HCIS to ZETDC, ZIMRA and TelOne. According to
figure 4.3 above all the respondents either agreed or strongly agreed that benefits of HCIS to
ZETDC, ZIMRA and TelOne were that the organisations gained more security for their data,
improvement of communication, improved decision making, help in achieving company
objectives as well as providing a competitive advantage. The table above also shows that the
three major benefits from HCIS were (85.2%) more security of data, (75.2%) improved
communication and (70%) improved decision making which are essential for human capital
management.

61
Table 4.5 Organisation * Communication Cross-tabulation
Communication Total
Agree Agree strongly
Count 22 68 90
ZETDC
% within Organisation 24.4% 75.6% 100.0%
Count 13 38 51
Organisation ZIMRA
% within Organisation 25.5% 74.5% 100.0%
Count 22 67 89
TelOne
% within Organisation 24.7% 75.3% 100.0%
Count 57 173 230
Total
% within Organisation 24.8% 75.2% 100.0%

Table 4.5 shows that 75.6% of respondents from ZETDC strongly agreed that the
implementation of HCIS improves communication at their organisation, whilst 75.3% from
TelOne and 74.5% from ZIMRA also concur. These results show that all the three parastatals
have benefited from the implementation of HCIS at their organisations through improved
communication as they each had about 75% of the respondents strongly agreeing to that benefit.

Table 4.6 Organisation * Helps achieve company objectives Cross-tabulation

Helps achieve company Total
objectives
Agree Agree strongly
Count 31 59 90
ZETDC
% within Organisation 34.4% 65.6% 100.0%
Count 19 32 51
Organisation ZIMRA
% within Organisation 37.3% 62.7% 100.0%
Count 30 59 89
TelOne
% within Organisation 33.7% 66.2% 100.0%
Count 80 150 230
Total
% within Organisation 34.8% 65.2% 100.0%

Table 4.6 shows that 65.6% of respondents from ZETDC strongly agreed that the
implementation of HCIS helps the organisation achieve company objectives, whilst 66.2% from
TelOne and 62.7% from ZIMRA also concur. The general similarity in the percentage of
respondents per organisation who strongly agree that HCIS helps achieve company objectives
shows that all the three parastatals have achieved their objectives better through the
implementation of HCIS.

62
Figure 4.4 How the organisations rated the benefit of competitive advantage

As a follow-up to the previous discussion on the benefits of HCIS to ZETDC, ZIMRA and
TelOne, figure 4.4 above shows that the majority (85.5%) respondents who strongly agreed that
the implementation of HCIS provided their organisation a competitive advantage were from
TelOne. While only 5.4% and 10.1% of those who strongly agreed were from ZIMRA and
ZETDC even though they did not highly rate the importance of that benefit for their organisation.
This could be because ZIMRA and ZETDC are state owned enterprises that have monopoly over
their markets whilst TelOne appreciate more the benefit of having a competitive advantage as the
communication’s sector they are in is highly competitive with some other major players like
Econet, Telecel, Africom just to name a few.

63
Figure 4.5 How the organisations rated the benefit of improved security of data
Figure 4.5 shows that 85.2% of respondents strongly agreed that the main benefit from HCIS
was of improving security of data at their organisations especially for their employee records.
Furthermore, of the respondents who stated that they strongly agreed ZIMRA provided 90% of
those respondents which indicates that although all the organisations appreciated the benefit
brought about by HCIS of enhanced security of data at ZIMRA it seems to be of paramount
importance to them as compared to TelOne and ZETDC.

Table 4.7 Organisation * Improved decision making Cross-tabulation

Improved decision making Total
Agree Agree strongly
Count 15 75 90
ZETDC
% within Organisation 16.7% 83.3% 100.0%
Count 20 31 51
Organisation ZIMRA
% within Organisation 39.2% 60.8% 100.0%
Count 23 55 89
TelOne
% within Organisation 38.2% 61.8% 100.0%
Count 69 161 230
Total
% within Organisation 30% 70% 100.0%

According to table 4.7 above, the majority of respondents who strongly agreed that one of the
major benefits of HCIS to their organisations was of improvement of decision making were from
ZETDC through 83.3% of their of respondents. The other two parastatals TelOne and ZIMRA

64
had 61.8% and 60.8% respondents respectively who also strongly agree that their organisations
have benefitted from the implementation of HCIS through the improvement of decision making.
The results indicate that although all the organisations appreciated the benefit brought about by
HCIS of improvement of decision making ZETDC appreciated the benefit more than the other
two ZIMRA and TelOne by over 20%.

4.7 Key success factors in the implementation of HCIS

Figure 4.6 Whether these key success factors were there at ZETDC, ZIMRA and TelOne
Figure 4.6 shows that the majority of respondents disagree strongly that these key success factors
have been present at ZETDC; ZIMRA and TelOne even though they are key success factors of
HCIS implementation. The figure 4.6 shows that 47.4% of the respondents disagree strongly and
an additional 13% disagree that there is top management support in HCIS implementation at
ZETDC, ZIMRA and TelOne. This indicates that the majority of respondents believe that there is
no top management support in the implementation and use of HCIS at ZETDC, ZIMRA and
TelOne. Figure 4.6 also shows that 47% of the respondents disagree strongly and an additional
13% disagree that there is good communication during HCIS implementation at ZETDC,
ZIMRA and TelOne. This indicates that the majority of respondents believe that there is poor
communication during the implementation and use of HCIS at ZETDC, ZIMRA and TelOne.
Based on figure 4.6 46.5% of the respondents disagree strongly and an additional 13.5% disagree

65
that there is training in HCIS implementation at ZETDC, ZIMRA and TelOne. This indicates that
the majority of respondents believe that there is no training or little training in the
implementation and use of HCIS at ZETDC, ZIMRA and TelOne.

Furthermore, figure 4.6 also shows that 47% of the respondents disagree strongly and an
additional 13% disagree that there is support of human capital department during HCIS
implementation at ZETDC, ZIMRA and TelOne. This indicates that the majority of respondents
believe that the human capital department is not being supported in the implementation and use
of HCIS at ZETDC, ZIMRA and TelOne. According to figure 4.6 46.5% of the respondents
disagree strongly and an additional 13% disagree that there is user involvement participation
during HCIS implementation at ZETDC, ZIMRA and TelOne. This indicates that the majority of
respondents believe that there is no user involvement participation in the implementation and use
of HCIS at ZETDC, ZIMRA and TelOne. The results indicate that the key success factors of
HCIS which were not visible or practiced at ZETDC, ZIMRA and TelOne were top management
support, good communication, training in the use of HCIS, human capital department support
and user involvement participation.
Table 4.8 How respondents rated whether there was top management support in HCIS
implementation
Top management support Scale
Strongly agree Agree Disagree Disagree strongly
Management 0% 0%
0% 100%
HCM staff 0% 0%
0% 100%
IT staff 0% 0%
20% 80%
Other staff 0% 0%
8% 92%

Further to the findings discussed previously in figure 4.6, table 4.8 above shows how each type
of respondent rated whether there was top management support in HCIS implementation. The
table shows that all the HCM staff as well as the majority of IT staff and other staff strongly
disagree that there was top management support in HCIS implementation at ZIMRA, ZETDC
and TelOne however all the management staff thought otherwise as they believe that there is and
was top management support in HCIS implementation. This indicates that as part of management

66
which is supposed to provide adequate support for successful HCIS implementation the
management staff may believe that they have provided the necessary support however the
responses from HCM staff, IT staff as well as the rest of the other staff shows that their support
has been insufficient. The researcher believes that on the other hand this is could be viewed as an
effort by management to cover for their inadequate or nonexistent support during HCIS
implementation at their organisations.
Table 4.9 Organisation * Top management support Cross-tabulation
Top management support Total
Disagree Disagree Agree
strongly
Count 20 4 66 90
ZETDC % within 22.3% 4.4% 73.3% 100.0%
Organisation
Count 18 10 23 51
Organisation ZIMRA % within 35.2% 19.6% 45.2% 100.0%
Organisation
Count 71 16 2 89
TelOne % within 79.7% 17.9% 2.2% 100.0%
Organisation
Count 109 30 91 230
Total % within 47.4% 13% 39.6% 100.0%
Organisation

Based on table 4.9 above, the majority of respondents who strongly disagreed that there is top
management support during implementation and use of HCIS at their organisation were from
TelOne through 79.7% of their of respondents. The other two parastatals ZETDC and ZIMRA
had 22.3% and 35.2% respondents respectively who strongly disagree that there is top
management support during implementation and use of HCIS at their organisation. The results
indicate that TelOne is the only organisation with a majority that believe that there is no top
management support during implementation and use of HCIS at their organisation whilst the
majority of ZETDC and ZIMRA respondents state otherwise, as they concur that there is top
management support during implementation and use of HCIS at their organisations.

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Table 4.10 Organisation * Adequately trained Cross-tabulation
Adequately trained Total
Disagree Disagree Agree Agree
strongly strongly
Count 32 21 37 0 90
ZETDC % within 35.6% 23.3% 41.1% 0.0% 100.0%
Organisation
Count 37 2 11 1 51
Organisation ZIMRA % within 72.5% 3.9% 21.5% 2.0% 100.0%
Organisation
Count 38 8 42 1 89
TelOne % within 42.7% 9.0% 47.2% 1.1% 100.0%
Organisation
Count 107 31 90 2 230
Total % within 46.5% 13.5% 39.1% 0.9% 100.0%
Organisation

Table 4.10 above shows that 72.5% of respondents from ZIMRA disagree strongly that HCIS
users were trained adequately compared to only 42.7% from TelOne and 35.6% from ZETDC
who concur with them. The results indicate that ZIMRA respondents are the ones who are the
most concerned with the issue that HCIS users were not trained adequately as compared to
TelOne and ZETDC.

Table 4.11 Organisation * User involvement participation Cross-tabulation

User involvement participation Total
Disagree Disagree Agree Agree
strongly strongly
Count 64 21 5 0 90
ZETDC % within 71.1% 23.3% 5.6% 0.0% 100.0%
Organisation
Count 14 2 35 0 51
Organisation ZIMRA % within 27.5% 3.9% 68.6% 0.0% 100.0%
Organisation
Count 29 7 52 1 89
TelOne % within 32.6% 7.9% 58.4% 1.1% 100.0%
Organisation
Count 107 30 92 1 230
Total % within 46.5% 13.0% 40.0% 0.4% 100.0%
Organisation

According to table 4.11 above 71.1% of respondents from ZETDC disagree strongly that there

68
was visible user involvement and participation in HCIS implementation at their organisation
compared to only 32.6% from TelOne and 27.5% from ZIMRA who also held a similar view.
The results indicate that of the three parastatals the lack of user involvement and participation in
HCIS implementation was more prevalent at ZETDC as compared to TelOne and ZIMRA.

4.8 Factors hindering successful implementation of HCIS in the organization

Table 4.12 Factors hindering successful implementation of HCIS at ZETDC, ZIMRA and
TelOne
FACTORS HINDERING SUCCESSFUL Scale
IMPLEMENTATION OF HCIS IN THE
Strongly Agree Disagree Disagree
ORGANIZATION
agree strongly
Insufficient resources 93.26% 6.31% 0% 0.43%
Failure to attract and retain HCIS expertise 58.14% 37.43% 4% 0.43%
Lack of understanding of HCIS among users 70% 28.3% 0% 1.7%
Lack of senior management commitment 0%
0% 91.5% 8.5%
Conflict in priorities between departments 0%
68% 32% 0%
Inadequate system support and backup 0%
17% 65.6% 17.4%
Low key user involvement during HCIS 0%
implementation 50% 32% 18%
Resistance to change and fear of the unknown 0%
98% 0.6% 1.4%
Lack of proper implementation strategy 0%
66% 32.6% 1.4%
Set objectives are unrealistic 0%
83.8% 16.2% 0%

Table 4.12 above shows the factors that are hindering the successful implementation of HCIS in
ZETDC, ZIMRA and TelOne. From the table the major factors were identified to be failure to
attract and retain HCIS expertise, resistance to change and fear of the unknown, setting
unrealistic objectives, lack of senior management commitment, lack of proper implementation
strategy, lack of understanding of HCIS among users as well as conflict in priorities between
departments. All the above listed factors have got a cumulative percentage of over 90% of
respondents who either agreed or strongly agreed.

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Table 4.13 Organisation * Failure to attract and retain HCIS expertise Cross tabulation
Failure to attract and retain HCIS Total
expertise
Disagree Disagree Agree Agree
strongly strongly
Count 0 3 51 36 90
ZETDC % within 0.0% 3.3% 56.7% 40% 100.0%
Organisation
Count 1 5 18 27 51
Organisation ZIMRA % within 2% 9.8% 35.3% 52.9% 100.0%
Organisation
Count 0 1 17 71 89
TelOne % within 0.0% 1.1% 19.1% 79.8% 100.0%
Organisation
Count 1 9 86 134 230
Total % within 0.4% 4% 37.4% 58.1% 100.0%
Organisation

Based on table 4.13 above 79.8% of respondents from TelOne agree strongly that one of the
factors hindering the successful implementation of HCIS at their organisation was failure to
attract and retain HCIS expertise compared to 40% from ZETDC and 52.9% from ZIMRA who
also shared a similar view. The results indicate that of the three parastatals the failure to attract
and retain HCIS expertise was a major hindering factor on the successful implementation of
HCIS at TelOne as compared to ZETDC and ZIMRA.

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Table 4.14 Organisation * Low key user involvement during HCIS implementation Cross-
tabulation
Low key user involvement during HCIS Total
implementation
Disagree Agree Agree strongly
Count 3 24 63 90
ZETDC % within 3.3% 26.7% 70% 100.0%
Organisation
Count 20 21 10 51
Organisation ZIMRA % within 19.6% 41.1% 19.6% 100.0%
Organisation
Count 18 29 42 89
TelOne % within 20.2% 32.6% 47.2% 100.0%
Organisation
Count 41 74 115 230
Total % within 18% 32% 50% 100.0%
Organisation

Table 4.14 above shows that 70% of respondents from ZETDC agree strongly that one of the
factors hindering the successful implementation of HCIS at their organisation was low key user
involvement during HCIS implementation compared to 47.2% from TelOne and 19.6% from
ZIMRA who also shared a similar view. The results indicate that of the three parastatals low key
user involvement during HCIS implementation was a major hindering factor on the successful
implementation of HCIS at ZETDC as compared to TelOne and ZIMRA.

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Table 4.15 Organisation * Lack of understanding of HCIS among users Cross-tabulation
Lack of understanding of HCIS Total
among users
Disagree Agree Strongly
strongly agree
Count 0 40 50 90
ZETDC % within 0% 44.4% 55.6% 100.0%
Organisation
Count 0 1 50 51
Organisation ZIMRA % within 0% 1.9% 98.1% 100.0%
Organisation
Count 4 24 61 89
TelOne % within 4.5% 27% 68.5% 100.0%
Organisation
Count 4 65 161 230
Total % within 1.7% 28.3% 70% 100.0%
Organisation

Table 4.15 above shows that 98.1% of respondents from ZIMRA agree strongly that one of the
factors hindering the successful implementation of HCIS at their organisation was lack of
understanding of HCIS among users. Furthermore, TelOne and ZETDC also have a high number
of respondents who also agree strongly that lack of understanding of HCIS among users is a
major hindering the successful implementation of HCIS at their organisation was lack of
understanding of HCIS among users, at 68.5% and 55.6% respondents respectively. However
these results indicate that ZIMRA has got such a high percentage as compared to TelOne and
ZETDC who concur that the lack of understanding of HCIS among users has been hindering the
successful implementation of HCIS hence it means of the three parastatals lack of understanding
of HCIS among users was a major hindering factor on the successful implementation of HCIS at
ZIMRA as compared to TelOne and ZETDC.

4.9 Normality test

The researcher conducted normality test of the variables on whether the data cases in the sample
were drawn from a normally distributed population or whether the distribution for the variables
differ significantly from a comparable normal distribution. The researcher used the Shapiro-Wilk
test and the results are illustrated in the table below:

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Table 4.16 Normality tests

Kolmogorov-Smirnova Shapiro-Wilk
Statistic Df Sig. Statistic Df Sig.
HCIS improves HCM .264 230 .000 .842 230 .000
Top management support .313 230 .000 .710 230 .000
Good communication .311 230 .000 .711 230 .000
Insufficient resources .325 230 .000 .745 230 .000
Resistance to change .327 230 .000 .740 230 .000
Unrealistic objectives .328 230 .000 .738 230 .000
a. Lilliefors Significance Correction

The table 4.16 above shows that all the six variables have a sig. score of less than 0.05 as they all
recorded 0.000 hence this indicates that the distribution of the variables differed significantly
from a comparable normal distribution. Therefore, for this reason this study shall use the non-
parametric test of Spearman Correlation test.

4.10 Non-parametric correlation test

Table 4.17 Correlations
HCIS Top Good Insufficient Resistance Unreali
impact management communication resources to change objectiv
on support
HCM
Correlation 1.000 .750** .556** -.711** -.823** -.40
Coefficient
Spearman's Improvement
Sig. (2- . .000 .000 .001 .001 .0
rho of HCM
tailed)
N 230 230 230 230 230 2
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).

According to the table 4.17 above improvement of HCM and top management support have a
correlation coefficient of 0.750 and a p-value of less than 0.05 which shows that there is a
significant relationship between the two variables and they have a strong positive correlation.

Table 4.17 also shows that good communication and improvement of HCM have a correlation
coefficient of 0.556 as well as a p-value of less than 0.05. This indicates that these two variables
are significantly related to each other and they have a strong positive correlation.

73
Based on table 4.17 above improvement of HCM and insufficient resources have a correlation
coefficient of -0.711 and a p-value of less than 0.05 which shows that there is a significant
relationship between the two variables and they have a moderate negative correlation.

From the table 4.17 resistance to change and improvement of HCM have a correlation coefficient
of -.823 as well as a p-value of less than 0.05. This indicates that these two variables are
significantly related to each other and they have a strong negative correlation.

According to the table 4.17 above improvement of HCM and unrealistic objectives have a
correlation coefficient of -0.409 and a p-value of less than 0.05 which shows that there is a
significant relationship between the two variables and they have a moderate negative correlation.

4.11 Regression Analysis

Table 4.18 Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 .825a .705 .716 .742
a. Predictors: (Constant), Unrealistic objectives, HCD support, Adequately trained, Good
communication, Low user involvement, Conflict in priorities, Top management support, HCIS
expertise, Insufficient resources, Resistance to change

Table 4.18 shows that the R-square value is 0.705 which means that 70.5% of the variation in the
impact of HCIS on HCM is explained by the 10 variables namely Unrealistic objectives, HCD
support, Adequately trained, Good communication, Low user involvement, Conflict in priorities,
Top management support, HCIS expertise, Insufficient resources and Resistance to change.
Table 4.19 ANOVAa

Model Sum of Squares Df Mean Square F Sig.

Regression 14.206 10 1.421 2.580 .006b
1 Residual 120.576 219 .551
Total 134.783 229
a. Dependent Variable: HCIS impact on HCM
b. Predictors: (Constant), Unrealistic objectives, HCD support, Adequately trained, Good
communication, Low user involvement, Conflict in priorities, Top management support, HCIS
expertise, Insufficient resources, Resistance to change

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The table 4.19 above shows that the set of predictors is statistically significant at predicting the
impact of HCIS on HCM as the p-value for this test is 0.006 which is less than 0.01 level of
significance. This means that it is highly unlikely that these regression results occurred by
chance.
Table 4.20 Coefficients
Model Unstandardized Standardized T Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) 1.705 .280 6.100 .000
Top management support .770 .268 .085 .260 .000
Good communication .088 .186 .010 .045 .008
Adequately trained .606 .167 .130 .634 .097
HCD support .033 .241 .040 .135 .143
Insufficient resources -.016 .514 -.445 -1.003 .001
Lack of HCIS expertise -.073 .438 -.328 -.853 .454
Conflict in priorities -.191 .426 .163 .449 .064
Resistance to change -.658 .939 -1.149 -1.447 .000
Low user involvement -.099 .356 -.257 -.840 .132
Unrealistic objectives -.023 .346 -.186 -.643 .001
a. Dependent Variable: HCIS impact on HCM

Table 4.20 above determines which of the variables are significant predictors of HCIS’s impact
on HCM are. Out of the ten variables in the multivariate model only five have p-values less than
the sig. value of 0.05. This indicates that the variables that predict HCIS impact on HCM are top
management support, good communication, insufficient resources, resistance to change and
unrealistic objectives. However, of the five identified variables the one with the highest B and
Beta coefficient was top management support which means that it has the major contribution to
how much HCIS can impact HCM. On the other hand, out of the five identified variables that
HCIS impact on HCM there were three with negative B and Beta coefficient which shows that
they have a negative effect on HCIS’s impact on HCM, the worst of those three being resistance
to change and fear of the unknown.

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4.12 Discussion
The main aim of this study was to investigate the impact of information technology on HCM in
parastatals and establish the reasons why staff reverts to manual system. The results in this study
have shown that the majority indicated that they disagree that the current HCIS at their
organisation has got an impact on human capital management at their organisation. Most of the
respondents from ZETDC and TelOne concur that the current HCIS at their organisations have
not had the desired impact on human capital management however those from ZIMRA state
otherwise, as they believe that their current HCIS has got an impact on human capital
management at their organisation.

On the other hand, all three parastatal organisations concur that their organizations have not
benefitted significantly from HCIS. Although respondents at ZIMRA believe that the current
HCIS has got an impact on human capital management at their organisation they however
acknowledge that the organisation has not benefitted significantly from the HCIS.

Even though ZETDC, ZIMRA and TelOne concur that their organizations have not benefitted
significantly from HCIS they still acknowledged that there were some benefits of HCIS at their
organisations. The major benefits from HCIS which were universally evidenced at all the three
parastatals were (85.2%) more security of data, (75.2%) improved communication and (70%)
improved decision making which are essential for human capital management. This is in line
with Ball (2005) who postulates that since the system deals with employees' personal data, which
are sensitive, it would ensure data security while transferring information from one place to
another. Additionally, Armstrong (2006) highlights that effectively implemented HCIS would
also enhance communication between employers and employees and build strong relationship
with unions and management committees. Some of the other lesser benefits of HCIS to ZETDC,
ZIMRA and TelOne include helping in achieving company objectives as well as providing a
competitive advantage. It was also revealed that the major benefit of HCIS mainly evidenced at
ZETDC as compared to the other two parastatals was improved decision making as shown in
table 4.5 whilst the benefit mainly evidenced at ZIMRA was improved security of data and at

76
TelOne the main benefit they evidenced was competitive advantage.

The research also revealed that that the key success factors to the implementation and effective
use of HCIS were not evidenced at the three parastatals. The main key success factors that were
lacking were top management support, adequate training, support for human capital department,
user involvement participation and good communication. This is contrary to McElroy (2011)
who posits that successful implementation of human resource information system relies on the
support of top management, the support of the information technology department, the
involvement of human capital experts/consultants, support of human capital staff, computer
knowledge of human capital staff and human capital information system training. Furthermore,
each of the three parastatals had a key success factor which was mainly inclined to their
organisation. At ZIMRA the key success factor which was lacking was adequate training for
HCIS users, whilst at ZETDC it was user involvement participation and TelOne top management
support.

The study also notes that there are factors hindering the successful implementation and use of
HCIS at ZETDC, ZIMRA and TelOne. These factors were identified as failure to attract and
retain HCIS expertise, resistance to change and fear of the unknown, setting unrealistic
objectives, lack of senior management commitment, lack of proper implementation strategy, lack
of understanding of HCIS among users as well as conflict in priorities between departments. This
is in line with Shirouyehzad et al (2010) who highlight that some of the critical failure factors
hindering the implementation of HCIS at organisations were insufficient resources, failure to
attract and retain HCIS expertise, lack of understanding of HCIS among users, lack of senior
management commitment, conflict in priorities between departments, inadequate system support
and backup, low key user involvement during HCIS implementation, resistance to change and
fear of the unknown, lack of proper implementation strategy and set objectives are unrealistic.
The study further revealed that the main challenge that has been evidenced more at TelOne than
at either ZETDC or at ZIMRA (as shown in table 4.11) was the organisation’s failure to attract
and retain HCIS expertise. Furthermore, the lack of top management support highlighted earlier
at TelOne (as shown in table 4.7) could have been the genesis or an exacerbation of the above
noted challenge as top management might be failing to support HCIS at TelOne by not investing

77
in retaining and attracting of HCIS expertise. On the other hand, at ZETDC it was revealed that
they were being hindered by low key user investment during HCIS implementation (as shown in
table 4.12). Additionally, low key user investment during HCIS implementation could also have
been due to lack of user involvement participation which was revealed earlier and also shown in
table 4.9.Whilst at ZIMRA their main challenge was the lack of understanding of HCIS among
users (as shown in table 4.13). This challenge could be due to inadequate training of HCIS users
as highlighted earlier in table 4.8.

The researcher also explored the correlations amongst the variables under study. Of interest is the
correlation test result which shows that there is a strong positive correlation between top
management support and the impact of HCIS on HCM with a correlation coefficient of 0.750,
whilst there is a moderate positive correlation between good communication and the impact of
HCIS on HCM with a correlation coefficient of 0.556. Those results mean that top management
support and good communication when implementing HCIS would have a positive impact on
HCM. This is in line with Davenport et al (2008) who put forward that fast communication,
proper structure to implement, enough financial resources, rich and competent knowledge and
skills, and top management support are examples of organizational readiness whilst Chung and
Snider (2010) further hypothesis that organizational readiness, as a perceived measure, will have
positive impact on HCIS’s effect on HCM. However, the correlations between insufficient
resources and the impact of HCIS on HCM as well as resistance to change and the impact of
HCIS on HCM were both strong negative correlations with correlation coefficients of -0.711 and
-0.823 respectively. Additionally, there is a negative moderate correlation between making
unrealistic objectives and the impact HCIS has on HCM with a correlation coefficient of -0.409.
Therefore, insufficient resources, resistance to change and making unrealistic objectives when
implementing HCIS would have a negative impact on HCM.

The regression analysis also revealed and confirmed that the variables that predict HCIS impact
on HCM are top management support, good communication, insufficient resources, resistance to
change and unrealistic objectives. However, of the five identified variables the one with the
highest B and Beta coefficient was top management support which means that it has the major
contribution on how much HCIS can impact HCM. This is in line with Wong et al. (2014) who

78
state that for system acceptance the most needed support comes from top management which is
needed throughout the implementation. On the other hand, out of the five identified variables that
HCIS impact on HCM there were three with negative B and Beta coefficient which shows that
they have a negative effect on HCIS’s impact on HCM with the worst being resistance to change
and fear of the unknown. This means that resistance to change and fear of the unknown has got
most negative effect on HCIS’s impact on HCM, therefore where there is resistance to change
and fear of the unknown the implementation of HCIS will not have the desired effect on HCM.
This is in line with Pitman (2014) who states that resistance to change, fear of the unknown and
computer phobia are the major impediments to human capital information system
implementation. In addition, David (2006) highlights that uncertainty and fear of the new system
compounds the desire of employees to continue with the "old way", which is the manual system,
to which they had grown accustom. Thus it was revealed by the regression analysis findings that
the main reasons why employees revert back to the manual system was because of resistance to
change, fear of the unknown and computer phobia.

4.13 Conclusion
The researcher presented an analysis and interpretation of the findings of the study. The chapter
discussed the benefits of HCIS to HCM, the key success factors of HCIS implementation, the
factors that were hindering TelOne, ZETDC and ZIMRA from the successful implementation and
use of HCIS at their organisations. Correlation tests and a regression analysis were also
undertaken in this chapter and the results were discussed. The next chapter will present the
conclusions and recommendations of the study.

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 CHAPTER 5

DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction
This chapter presents the conclusions and recommendations of the study. The main purpose of
the study was to investigate the impact of information technology on HCM in parastatals and
establish the reasons why staff reverts to manual system. To our knowledge this is the first study
that examines the impact of HCIS on HCM in parastatals as well as demonstrating the reasons
why staff revert to manual systems. The study was guided by the following objectives listed
below:

1. To identify the key success factors of HCIS implementation at ZETDC; ZIMRA and
TelOne.
2. To establish the factors hindering the successful implementation of HCIS at ZETDC;
ZIMRA and TelOne
3. To establish the benefits of HCIS to ZETDC; ZIMRA and TelOne.

5.2 Summary of findings

The section reviews the key success factors of HCIS implementation; the factors hindering the
successful adoption of HCIS as well as the benefits of HCIS to the parastatals.

5.2.1 The benefits of HCIS to ZETDC, ZIMRA and TelOne

The study established that the current HCIS at the parastatals is viewed not to have an impact on
human capital management at their organisations. This is a view mainly shared by respondents
from ZETDC and TelOne who concur that the current HCIS at their organisations has not had the
desired impact on human capital management. However, this is not the case at ZIMRA as they
believe that the current HCIS has had an impact on human capital management at their
organisation.

80
On the other hand, all three parastatal organisations concur that their organizations have not
benefitted significantly from HCIS. As in the case of ZIMRA which had previously stated that
the current HCIS has had an impact on human capital management at their organisation this
could mean that they believe the current HCIS has had an impact on human capital management
at their organisation however they acknowledge that the organisation has not benefitted
significantly from the HCIS.

Moreover, even though ZETDC, ZIMRA and TelOne concur that their organizations have not
benefitted significantly from HCIS they still acknowledged that there were some benefits of
HCIS to their organisations. The major benefits from HCIS which were universally evidenced at
all the three parastatals were enhanced security of data, improved communication and improved
decision making which are essential for human capital management. Some of the other lesser
benefits of HCIS to ZETDC, ZIMRA and TelOne were help in achieving company objectives as
well as providing a competitive advantage. It was also revealed that the major benefit of HCIS
mainly evidenced at ZETDC as compared to the other two parastatals was improved decision
making whilst the benefit mainly evidenced at ZIMRA was improved security of data and at
TelOne the main benefit they evidenced was competitive advantage.

5.2.2 The key success factors of HCIS implementation at ZETDC; ZIMRA and TelOne

It was also revealed that the key success factors to the implementation and effective use of HCIS
were not being evidenced at the three parastatals. The main key success factors that were lacking
were top management support, adequate training, support from human capital department, user
involvement participation and good communication. Furthermore, each of the three parastatals
had a key success factor which was mainly inclined to their organisation. At ZIMRA the key
success factor which was lacking that they were mainly concerned with was the need for
adequate training for HCIS users, whilst at ZETDC it was user involvement participation and
TelOne were mainly concerned with top management support.

The study also notes that there are factors hindering the successful implementation and use of
HCIS at ZETDC, ZIMRA and TelOne. These factors were identified as failure to attract and
retain HCIS expertise, resistance to change and fear of the unknown, setting unrealistic

81
objectives, lack of senior management commitment, lack of proper implementation strategy, and
lack of understanding of HCIS among users as well as conflict in priorities between departments.
The study further revealed that the main challenge that has been mainly affecting TelOne was the
organisation’s failure to attract and retain HCIS expertise. Furthermore, the lack of top
management support highlighted earlier at TelOne (as shown in table 4.7) could have been the
genesis or an exacerbation of the organisation’s failure to attract and retain HCIS expertise as top
management might be failing to support HCIS at TelOne by not investing in retaining and
attracting of HCIS expertise. On the other hand, at ZETDC it was revealed that they were being
hindered by low key user investment during HCIS implementation. Additionally, low key user
investment during HCIS implementation could also have been due to lack of user involvement
participation which was revealed earlier and also shown in table 4.9.Whilst at ZIMRA their main
challenge was the lack of understanding of HCIS among users. This challenge could be due to
inadequate training of HCIS users as highlighted earlier in the previous section.

5.2.3 The factors hindering the successful implementation of HCIS at ZETDC; ZIMRA and
TelOne

The study also notes that there are factors hindering the successful implementation and use of
HCIS at ZETDC, ZIMRA and TelOne. These factors were identified as failure to attract and
retain HCIS expertise, resistance to change and fear of the unknown, setting unrealistic
objectives, lack of senior management commitment, lack of proper implementation strategy, lack
of understanding of HCIS among users as well as conflict in priorities between departments. The
study further revealed that the main challenge that has been mainly affecting TelOne was the
organisation’s failure to attract and retain HCIS expertise. Furthermore, the lack of top
management support highlighted earlier at TelOne (as shown in table 4.7) could have been the
genesis or an exacerbation of the organisation’s failure to attract and retain HCIS expertise as top
management might be failing to support HCIS at TelOne by not investing in retaining and
attracting of HCIS expertise. On the other hand, at ZETDC it was revealed that they were being
hindered by low key user investment during HCIS implementation. Additionally, low key user
investment during HCIS implementation could also have been due to lack of user involvement
participation which was revealed earlier and also shown in table 4.9.Whilst at ZIMRA their main
challenge was the lack of understanding of HCIS among users. This challenge could be due to

82
inadequate training of HCIS users as highlighted earlier in the previous section.

5.3 Hypothesis testing

In addressing the main research question, the following hypothesis was proposed at the
beginning of the study and was tested in the previous chapter. The hypothesis is stated below:
H0: The successful implementation of HCIS at ZETDC; ZIMRA and TelOne has no significant
impact to HCM in the organisations.
H1: The successful implementation of HCIS at ZETDC; ZIMRA and TelOne has
significant impact to HCM in the organisations.

Based on the results of the study and the conclusions made above the researcher concludes that
top management support and good communication, which are some of the key success factors in
the implementation of HCIS, have a positive impact on HCM making it more effective.
However, insufficient resources, resistance to change and making unrealistic objectives, which
according to Shirouyehzad et al, (2010) are some of the key failure factors in the implementation
of HCIS, have a negative impact on HCM. This indicates that the successful implementation of
HCIS is evidenced by the existence of the key success factors like top management support and
good communication and these in turn ensure the effectiveness of HCM. On the other hand, the
existence of key failure factors like insufficient resources, resistance to change and making
unrealistic objectives would also lead to the failure of the implementation of HCIS making HCM
ineffective as staff revert to the manual system.

Therefore, the researcher rejects the null hypothesis that the successful implementation of HCIS
at ZETDC; ZIMRA and TelOne has no significant impact to HCM in the organisations. Whilst
accepts the H1 hypothesis that the successful implementation of HCIS at ZETDC; ZIMRA and
TelOne will lead to a more effective HCM in the organisations.

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5.4 Recommendations

Based on the findings of the study the following recommendations are made:

5.4.1 To Parastatals

Ensure that their organisations have got the key success factors of HCIS implementation namely;
top management support, adequate training for HCIS users, support for human capital
department, user involvement participation during implementation and use of HCIS as well as
good communication within the organisation so as to ensure that the implementation and use of
HCIS is successful.

The study also recommends that the parastatals be provided by the government or they seek own
funding for the resources needed for the successful implementation of HCIS which they are
lacking like top of the range computers, laptops, servers, software updates, fibrering as well as
training of all users

5.4.2 To ZETDC

Their management should ensure that the objectives set for the human capital department are
realistic as well as in tandem with HCIS’s capabilities so as not to strain the HCIS or render it
incompetent. This could be done by engaging the human capital department as well as other
HCIS users when setting the objective for the department.

5.4.3 To ZIMRA

The parastatal should ensure that all the HCIS users are adequately trained on the use of HCIS so
that they can appreciate the system and are encouraged to use it more. The training would
educate the users of HCIS that its implementation is not a threat to their jobs but in fact the
system is there to make their jobs easier.

Management could lead by example by them using and directly promoting its use through giving
incentives or penalties.

84
5.4.4 To TelOne

Top management at TelOne is encouraged to openly support the use of HCIS at their organisation
as well as providing financial support as well as any other support in retaining or attracting
experts in the field of HCIS which they seem to be currently lacking.

5.5 Limitations and Areas for further study

Limitations to the study might be that it was conducted in a single industry (parastatals) and the
respondents were sampled from a single geographical location (Harare), hence the results cannot
necessarily be generalized to other contexts. The researcher proposes that a further study be
conducted on the relationship of the efficiency of HCIS whether it has an effect on the
performance of parastatals in Zimbabwe. This would assist in assessing whether efficiency of
HCIS could be used as a strategic tool to improve the performance of parastatals.

85
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 Appendix B: Questionnaire cover letter

11 May 2015

Dear Participant

Re: RESEARCH ON THE IMPACT OF INFORMATION TECHNOLOGY ON HUMAN

CAPITAL MANAGEMENT IN PARASTATALS IN ZIMBABWE
My name is Francis Makwinja, a Master of Business Administration student at University of
Zimbabwe. In fulfillment of my programme, I am conducting a research titled “A
COMPARATIVE ANALYSIS OF THE IMPACT OF INFORMATION TECHNOLOGY ON
HUMAN CAPITAL MANAGEMENT IN PARASTATALS IN ZIMBABWE.
I humbly request your participation in this academic research by completing the questionnaire
attached herewith. The aim of this questionnaire is to collect data on your opinions and insights
concerning the topic. The results of this research can be useful in the development of a body of
knowledge which can then be used for policy formulation by parastatals in Zimbabwe.
Please note:
1. Do not print your name.
2. Your responses will be handled in total confidentiality, and shall be used solely for the
purpose of this academic research.
3. Participation is totally voluntary.
4. There is no compensation for participation.

Thank you very much for your valuable contribution.

Francis Makwinja
MBA Student - UZ

96
 Appendix C: Questionnaire

QUESTIONNAIRE ON A COMPARATIVE ANALYSIS OF THE IMPACT OF

INFORMATION TECHNOLOGY ON HUMAN CAPITAL MANAGEMENT IN
PARASTATALS IN ZIMBABWE: A CASE STUDY OF ZETDC, ZIMRA AND TELONE.

SECTION A: DEMOGRAPHICS
1. Which level are you in your organisation? Please tick only one

a. Management [ ]
b. HCM staff [ ]
c. I.T staff [ ]
d. Other [ ]

2. For how long have you been at your organisation?

a. Less than 1 year [ ]
b. 1 to 5 years [ ]
c. 6 years and above [ ]

SECTION B: HCIS IMPLEMENTATION FACTORS

3. Please rate the following variables by ticking in the appropriate box guided by the
rating scale provided below.

Rating Scale: 1 - Strongly disagree, 2 - Disagree, 3 - Agree, 4 – Strongly agree

VARIABLES Rating
Scale
1 2 3 4
KNOWLEDGE OF HUMAN CAPITAL INFORMATION SYSTEM (HCIS)
I understand HCIS very well
HCIS has got an impact on human capital management at your
organisation
BENEFITS OF HCIS
The organization has benefitted significantly from HCIS
HCIS implementation improved decision making in the organisation
Communication in the organisation has improved
The organisation gained more security of its data

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HCIS implementation helps achieve company objectives
HCIS implementation provides a competitive advantage
KEY SUCCESS FACTORS
Top management support has been visible during HCIS implementation
There was good communication about HCIS before it was implemented
HCIS users were trained adequately
There was support of the Human Capital Department in HCIS
implementation
There was visible user involvement and participation in HCIS
implementation
FACTORS HINDERING SUCCESSFUL IMPLEMENTATION OF
HCIS IN THE ORGANIZATION
Insufficient resources
Failure to attract and retain HCIS expertise
Lack of understanding of HCIS among users
Lack of senior management commitment
Conflict in priorities between departments
Inadequate system support and backup
Low key user involvement during HCIS implementation
Resistance to change and fear of the unknown
Lack of proper implementation strategy
Set objectives are unrealistic

SECTION C: RECOMMENDATIONS

4. What recommendations and suggestions do you have to improve the adoption and
implementation of HCIS at your organisation?

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
____________________________________

Thank you for taking time to complete this questionnaire

98
Appendix D: Consent Letters

99
100