Electronic human resource management (e-HRM) provides the information required to manage HRprocesses. These may be core employee database and payroll systems but can be extended to include such systems as e-recruitment, e-learning, performance management and reward system. The system may be web-based, enabling access to remote or online and at any time. This paper aims at finding out the perception level of employees regarding e-HRM in service organizations. For this purpose, 400 employees of IT and Banking organizations are targeted. Employees’ responses have been collected through a structured questionnaire consisting of demographic variables and statements regarding perception. Factor analysis, ANOVA and t-test are applied for finding out the perception of employees.