Theoretical Background

According to Pandey and De, (2013) currently technology is innovating at a significantly fast pace, where changing in accordance to the new advancements is inevitable for success in contemporary business practices. In the past two decades, the organizations have experienced an increasing role of Information and Communication Technologies (ICT) in changing the dynamics of how human resources will endeavor to achieve its organizational goals (Zhang and Adipat, 2005).

Here, implied concepts like motivation are vital for comprehension of compensation systems implemented on smartphone devices. Compensation is the basic need of the workforce and needs to be transparent and easily accessible to employees. Compensation is a basic employee requirement and provides increased satisfaction to employees if being effectively managed. It has been explained in research conducted by Paycor, (2013) and Prolog, (2013) that excessive time in payroll clearness causes increased employee turnover, and nonvalue added time also increases that significantly impacts the firm’s performance.

As identified by Chung et al., (2014) the workplace is going increasingly mobile where the performance of employees will increasingly depend on the increase in freedom to act from anywhere hence technologies compatible with smartphones allow teams to be more task oriented. Similarly, many organizations like H&M Inc. are benefiting by introducing concepts of E-payslips where employees can access compensation records at any point of time before actual remuneration is made. H&M is a fashion retail store enterprise, but similar evidence of success can be noted in the health care sectors where organizations use ICTs to better train employees, manage OHS, achieve administrative efficiency by payroll automation processes, and much more (Paycor, 2013).

Mhenni et al., (2011) inform that mobile phone usage has boosted significantly in the last few years and the trend is still rising with 1.79 billion units sold of which 462 million are smart phones. Employees are increasingly using smartphones to either communicate with each other or share professional work documents or data (Dery et al., 2014). The increased use is due to the acceptability of the technology and its powerful computational capacity that empowers HR with mobility and reliability in communication (CGI, 2013). These concepts advocate the adoption of smartphones as their primary focus for ICT innovations and adoptions in order to gain increased collaboration and strong productivity while providing employees with the power to shape the path towards completion of goals and objectives.

To succeed in forging the right culture for innovation and collaboration with increasing self-motivation, switching to the mobile platform is imperative(Verkasalo, 2007). The payroll is the basic right of the employee, this right needs to be addressed in a better manner where providing them access to the record of their performance on a smartphone. In addition, expected outcomes and performance standards should be communicated and linked to employee compensation.

It is suggested that it lowers the administrative efforts required. The use of mobile to create a paperless environment supports the organization’s cause of being sustainable in its business processes. The smartphone is a powerful device that is revolutionizing the processes of how businesses connect with their internal customers (employees) and external customers (clientele)(Baiyere and Salmela, 2013).  The impact of HR compensation via digitizing processes is known and with changing business needs and environment it is increasingly important to further evaluate the usability of HR compensation via smartphone. There is still a significant need to examine the usability of HR compensation in smartphone devices and determine its real impact on organizational productivity.

References

Baiyere, A. and Salmela, H. ‘Review: disruptive innovation & information technology-charting a path’. RMIT University, 1-11.

CGI (2013) Cities of Helsinki and Vantaa, Finland: CGI provides HR desktops with smart services.

Chung, S., Lee, K. Y. and Kim, K. (2014) ‘Job performance through mobile enterprise systems: The role of organizational agility, location independence, and task characteristics’, Information & Management, 51(6), pp. 605-617 %@ 0378-7206.

Dery, K., Kolb, D. and MacCormick, J. (2014) ‘Working with connective flow: how smartphone use is evolving in practice’, European Journal of Information Systems, 23(5), pp. 558-570 %@ 0960-085X.

Mhenni, R., Pascual, J. and Felty, C. (2011) Human Resources Services and Innovation: HR Access

Pandey, S. and De, D. (2013) ‘Role of Innovation in Practices of Human Resources for Organizational Competitiveness: An Empirical Investigation’,  Driving the Economy through Innovation and Entrepreneurship: Springer, pp. 355-365 %@ 8132207459.

Paycor (2013) ‘HR and Payroll Challenges For The Healthcare Industry’, Memphis Business Journal.

Prolog (2013) Epayslips [Case Study ], England

Verkasalo, H. (2007) ‘Empirical Findings on the Mobile Internet and E-Commerce’, BLED 2007 Proceedings, pp. 17.

Zhang, D. and Adipat, B. (2005) ‘Challenges, methodologies, and issues in the usability testing of mobile applications’, International Journal of Human-Computer Interaction, 18(3), pp. 293-308 %@ 1044-7318.