A Study of Digitalization in HRM and its Effectiveness in Execution of HR Strategies and Policies

Author Name(s): Mruthyanjaya Rao Mangipudi, Rajesh Vaidya
Author Email: raomangipudi@gmail.com

Abstract

This research paper is to investigate the emerging trends of human resource management with reference to digitalization in HRM. The paper will discuss the evolution of digitalization in HRM over a period of time and its contemporary application in execution of HRM strategies and policies. One of the foremost areas the HR should focus upon is “execution”. The problem statement revolves around “execution”, though the organization has a solid vision, excellent strategy and right talent. The top priority for the HR is to translate this strategy and vision into execution and make it a huge success. It is very pertinent to ensure the workforce in an organization is aligned to its strategy and priority. Especially, growing organizations do not have the luxury of having exclusive people assigned to do exclusive jobs. It is always all hands on deck scenario all the time. It is wise to note that the organizations are judged not only on their financial health, quality of service or workforce satisfaction, but also on how effectively they integrate with the external world, customers, partners and society at large. For this, the HR Managers have adopted the new ways of discharging their functions using innovate methods and tools like – Cloud HR technology, Artificial Intelligent driven tools, Adjusting the existing operating models, Adding strategic value to the businesses, Automation of mission critical HR functions such as a) talent acquisition, talent evaluation, c) on boarding, d) performance management, e) compensation & benefits, f) maximizing the economies of scale, which means executing it better, faster and cheaper.

Keywords Digitalization, Execution, Cloud HR Technology, Automation of HRM

Introduction

The nature of HR has evolved to a strategic function of an organization. The role of HR leaders in attracting, developing and enabling talent is critical to the success of any business. For this, it was inevitable for the HRM (Human Resources Management) to get transformed into Digital, which radically altered the way the employees and the businesses work. Digital Technology has entirely reinvented and enhanced the processes and systems in various functions across the industries, and the HR function is no exception. In the last two decades, digital tools like online job boards, applicant tracking systems (ATS), professional networking sites viz. LinkedIn, Facebook, Twitter have significantly changed the HR-dispensation right from a job posting or job application to recruitment and onboarding, employee engagement, performance management, and finally employee separation – capturing valuable insights during exit interview.HR started replacing manual processes which are of repetitive in nature, with automations. The need is to connect all HR processes across the organization over a period of time for greater transparency and efficiency. However, digitalization of HRM should not simply be looked at only a makeover process. HR leaders must be sensitive to the fact that it entails a huge change, and employees must be hand-held throughout this change failing which it is like a broken chain. Let us not forget that Digital HR journey too has its own challenges. It requires a considerable bandwidth of team members and has lot of potential to impact the organization’s overall productivity. As per report of the World Economic Forum, diversified workplaces would emerge in the industry due to mobile, cloud technology, big data and computing power. In another two years, it predicts, that AI (Artificial Intelligence), ML (Machine Learning), and advanced robotics drive the workforce increasingly.

 

Conclusion

Hence, the question here is not whether AI, ML or automation replace the HR. The question is all about how well the resources including HR people are well equipped by learning and getting acquainted with these newer technologies. It is the question of how can AI be used by humans to improve their job. When the organizations document the current processes, following by creating awareness among employees to give them hands-on exposure on the digitalized tools, the exercise would help build the confidence in the system. The digitalization in HRM has to be integrated with the overall HR strategies and policies thereby giving access to employees empowering them in all aspects to ensure greater transparency. Then only every employee will be fully informed and self-sufficient.

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