Digital Transformation: Challenges for Human Resources Management

Abstract

The global economic situation and need to be better prepared for competitive challenges put pressure on modern companies to shift toward automation and digitalization. As a consequence of rapid technological development and the speed of change and therefore forced transformation of business models and work design, organizations are faced with a need for a massive change of features and an extended role of HR management processes. To be able to drive future organizational performance, HR leaders and professionals are required to make changes in the skills and competencies they have and to acquire and possess new ones. The critical components of a digital transformation strategy that can help achieve a competitive advantage are human capital, intellectual capital, and knowledge. The purpose of this paper is to explore and elaborate on the contemporary position and the changing function of HRM in light of digital transformation. In that sense, a comprehensive analysis of available literature has been conducted addressing the domains of HR planning, reward management, performance management, employee engagement, training and development, health and safety, employee relations, as well as their change under the influence of digital transformation. As the main conclusion of this research, it can be stated that although digitalization, i.e., digital transformation, strongly affects HR practices and procedures specifically by using human resources information systems, the role of HR in contributing to the digitization strategy is not sufficiently emphasized. However, it can be argued that the results of this research represent a valuable contribution to future research and can certainly be an important benchmark for organizations when preparing strategies to respond to the challenges of the digital age.
 This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

The Impact of Digital Transformation on Human Resource Development in the Online Business Paradigm

“…Furthermore, alongside these changes, digital transformation also opens doors to new opportunities in HR development through various online learning platforms and available digital resources [18]. With easier and more flexible access to online courses, webinars, and various other resources, employees now have the opportunity to continuously develop their skills according to evolving business needs [19].…”

Innovative Human Resource Management Strategies in the Era of Digital Transformation

“…Increasing employee digital competence has become the main focus in facing digital transformation challenges. The literature review highlights that with digital transformation, employees need to have skills and a deep understanding of technology to remain relevant and effective in an increasingly digitalized work environment (Barišić, 2021) (Hang, 2021). This includes not only knowledge of the latest software and applications, but also an understanding of how those technologies can be applied effectively in the context of their work.…”

The Impact of Digital Transformation on Sustainable Development: The Mediating Role of Development of Human Resources Management Practices “An Empirical Study on Private Hospitals

“…The practical results showed that there is the significant and positive correlation between digital transformation and HRM practices. Moreover, the findings asserted on the significant and positive effect of all dimensions of digital transformation on all dimensions of Human resources management (Recruitment and selection, training and development, and performance appraisal, compensation, performance management) Barišić, Barišić & Miloloža (2021) were interested in analyzing the impact of digital transformation which measured by (Strategy, organizational culture, Transformational leadership, and human resources) on human resources management practices (Recruitment and selection, training and development, and performance appraisal and compensation). Depending on Qualitative analysis, the findings showed that digital transformation acts as critical motivator for developing HRM practices as the application of digital technologies, the ways of hiring and selecting employees have changed.…”