The Relationship Between Digital Human Resource Management and Organizational Performance

 

In today's business world, digital HRM is essential. In order to be relevant in the market and achieve a competitive edge, organizations must pursue digital transformation. The conclusions of this study will be crucial in helping organizations implement digital HR successfully and boost performance. This study gave the reader an overview of the HR digital industry. The results should serve as a starting point for researchers to conduct additional investigations on digital HRM, and they should also help other researchers locate relevant studies to include in the literature review stage of their study. Researchers could also benefit from the findings because they will serve as a foundation for understanding how digital HRM affects organizational performance. 

Figure 01: Digital HRM

The importance of digital HRM is on the rise these days, and firms are becoming increasingly concerned about it. It is advised that the researchers look more closely at how performance has changed from the past to the present, how much it has impacted the companies, the function of the HR manager, and the evaluation of the implementation's return on investment.

Figure 02: Digital HRM Agenda

Digital HRM components

Technology has altered HRM to make it more competitive and adaptable in today's market. HRM has undergone a digitalization from the traditional. The elements listed below are necessary to change HRM:

Digital workforce

The current generation is referred to as the "digital workforce" in the millennial era; they have internet-connected devices, and web-based services and applications have always fascinated their daily life. The company must be digital in order to interact with these employees, who require digital workplaces. As a result, design thinking, video, behavioral economics, and the application of system analytics are all integrated into digital HRM.

Digital work

Using technology in work activity and management functions, the contents of work become digital. Organizations must incorporate digital components into their workflows and convert typical manual tasks to digital tasks. Digital tools and media must be used by organizations to engage with and communicate with their workforce. Organizational tasks and work both require digital organizing.

Digital assistance management

This entails organizing, putting into practice, and utilizing digital technologies to support HRM tasks such processing payroll, awarding and compensating employees, managing performance, providing training and development, and more.

Updated HR technologies 

There has been a significant shift away from traditional HR software and toward more contemporary platforms like cloud-based ones. Applications for human resources have recently made their way to mobile devices, and this trend may continue in the future. In choosing a technology vendor, mobile and social capability are both prerequisites. Decision-enabling analytics, employee performance monitoring and forecasting, and mobile apps are enabling real-time employee communication across borders and in far-flung regions.

 A Different Country's Perspective on Digital HR

1. Human resource management has undergone digitalization since traditional HR has pushed to participate in this digital environment.

2. To incorporate digital technologies and smart phones, 56% of organizations globally have reorganized their human resource programs.

3. Digital technology has been adopted by 51% of businesses worldwide.

4. According to the survey results, roughly 33% of organizations are employing AI to give improved human resource solutions, and 40% of them have created mobile applications to do so.

Figure 03: Digital HR practice worldwide and its percentage of utilization

References

Nawaz, N., & Gomes, A. M., (2017). Human resource information system: a review of previous studies. Journal of Management Research, 9(3).

Leopold, John W.  & Harris, Lynette (eds.)  (2009). The Strategic Managing of Human Resources, 2nd Edition, Harlow: Prentice Hall/Financial Times.

SEMANTIC SCHOLAR, (2018).  Digital HRM and its Effective Implementation: An Empirical Study [Online] Available from https://www.semanticscholar.org/paper/Digital-HRM-and-its-Effective-Implementation%3A-An-Saini/51d785461a769772cde018f547864be70dd35f9e [Accessed on 30th November 2022]

RESEARCHLEAP, (2021).  A Study on Contribution of Digital Human Resource Management towards Organizational Performance [Online] Available from https://researchleap.com/a-study-on-contribution-of-digital-human-resource-management-towards-organizational-performance/ [Accessed on 30th November 2022]