Importance of Information Technology in Reaching HR Effectiveness: Example of Local and International Banks in Russia

Humanity & Social Sciences Journal. 2013. No. 8 (1). P. 35–40.

Prosvirkina E. Y.

It is often supposed that the usage of technology applications increases effectiveness. The current research is devoted to the analysis of information technology in human resource management of the Russian banking industry and its influence on the organizational performance of banks. The semi-structured interviews with HR Directors of both international and local banks were conducted to collect data on the HR technology used. To analyze HR effectiveness and organizational performance of banks, several indicators were calculated, including human capital return on investment, return on assets and return on equity. The results demonstrate that international bank has more HR technology applications, but no technology support for HR administration function. On the contrast, Russian local bank has HR administration and payroll support and no other technology applications. Human capital return on investment is higher in an international bank as well as it has higher return on assets and equity. Though, there are other factors, which influence HR effectiveness and performance of international banks, the level of HR technology development should positively influence an organization. The same view was expressed by the interviewed HR Directors.

Keywords: human resources, bank, IT-services