Information technology and human resources management: Harnessing the power and potential of netcentricity

Information technology is altering the context within which HRM operates, providing both challenges and opportunities. At the core of the change is network centricity or netcentricity, which is the power of digital networks to distribute information instantly and on a global scale. The new electronic networks provide three main types of connectivity (i.e. inter-organizational, intra-organizational, and extra-organizational) that blur organizational boundaries and yet offer potential for competitive advantage. At the same time, netcentricity poses challenges to HRM in the form of issues with organizational relationships with employees via organizational identity and culture, managerial relationships with employees in virtual work arrangements, and employee adjustment and retention. To reach its potential, netcentricity requires HRM to be a catalyst and leader in such areas as developing dynamic capabilities, conveying organizational culture, and knowledge management. Netcentricity also offers HRM the possibility of developing its own networked relationship with employees as a value-added means of enhancing employment relationships, and ultimately positively influencing both employee attitudes and behaviors.