The Role of Technology in Managing People (SQA National 5 Business Management): Revision Note

Using technology in human resource management

• Technology plays a major role in how organisations recruit, train, communicate with and manage employees

• It helps businesses work more efficiently, store information securely and make better decisions about their people

Technology in HRM

1. Databases

• Businesses often use databases to store and manage employee information securely

• Uses

  • Store details such as employee names, addresses, emergency contacts, job titles, pay rates and attendance records

  • Track holidays, training and sickness

  • Generate reports on staffing, payroll or absence levels quickly and accurately

• Benefits

  • Saves time and reduces paperwork

  • Ensures information is easy to access and update

  • Reduces errors compared with manual record-keeping

2. E-Training software

• E-training (or online learning platforms) allows employees to complete training through computers or mobile devices

• Uses

  • Provide courses on topics such as health and safety, equality or customer service

  • Include quizzes and progress tracking to test understanding

  • Allow new staff to complete induction training remotely

• Benefits

  • Flexible, as staff can learn at their own pace and location

  • Cost-effective, as there is no need for printed materials or hiring trainers

  • Keeps a digital record of who has completed training

3. Online recruitment processes

• Increasingly, recruitment processes are completed entirely online

• Uses

  • Advertise vacancies on websites, social media and job boards

  • Use online application forms and CV uploads to gather information

  • Screen applicants using automated software that filters by keywords or qualifications

  • Conduct video interviews using online platforms

• Benefits

  • Reaches a wide audience of applicants

  • Speeds up shortlisting and reduces recruitment costs

  • Allows fairer comparison of candidates using consistent digital records

4. Intranets

• An intranet is a private internal network used by an organisation to share information with employees

• Uses

  • Store and share internal documents such as policies, training manuals and staff handbooks

  • Post company news, announcements or upcoming events

  • Provide access to forms (e.g. holiday requests or expense claims)

• Benefits

  • Ensures all staff can access up-to-date information easily

  • Reduces paper use and confusion caused by outdated documents

  • Encourages communication and transparency across departments

Other technologies

• Video conferencing allows meetings and interviews to be held remotely

• Email and instant messaging enables quick communication with staff

• Electronic diaries help plan meetings and manage workloads

• Cloud storage keeps HR documents securely backed up and accessible from anywhere

The Data Protection Act

• When using technology, businesses must follow the Data Protection Act 2018, which protects how personal information is collected, stored, and used

• Key principles include

  • Personal data must be used fairly and lawfully

  • Information must be kept accurate and up to date

  • Data should only be kept for as long as necessary

  • It must be stored securely, with restricted access

  • Employees have the right to see information held about them

• Failing to follow the Act can lead to fines, legal action or loss of trust from staff and customers