A Study On Digitization Of HR And Its Benefits To Human Resource Management
1. ď
Abstract: Digitalization of HR means converting the traditional
HR Functions into Functions which makes use of new technology
like HR Bots, Social media etc. for smooth running of the
operations is called as Digital HR. The aim of this paper is to
identify the various benefits the organization can get through the
means of Digital HR. It also highlights the various barriers that
might come in the way of adopting the Digital HR. In this study we
have reviewed many research papers for the purpose of collecting
data which is required for providing a proper insight about the
Digital HR and this research is based on interview and secondary
data.
Keywords: Digital HR, Transformation, HR Functions,
Performance
I. INTRODUCTION
A. Digital HR:
Digital HR is a procedure of improvement wherein social,
mobile, Analytical and cloud (SMAC) innovations are
utilized to make HR more productive. At the end of the day, it
means utilizing different innovation in HR tasks for
increasing the organizational performance.
B. Digitization:
HR advanced change is the way toward changing
operational HR procedures to end up automated and
information driven.
C. Steps for Digital HR Transformation:
Making a Digital Transformation in HR is never an easy
task. So here are a few steps for a successful start of Digital
Transformation:
1. Establish a clear goal:
The first step is to come out with a goal which states about
what is the purpose of using the new technology and how it is
going to be beneficial to an individual and organization. The
objectives should focus towards the employees has they are
the end users.
2. Get everyone on board:
It is very much essential to inform about transformation or
use of new technology to all the members of the organization
so that in future the work can run smoothly.
3. Donât overcomplicate things:
Digital Transformation doesnât mean you make complete
changes in all HR Functions, rather you have to check in
which particular function it is very much essential and
whether employees of your organization are capable of
handling it. Before implementing transformation always ask
your employees.
4. Prioritize ideas:
Begin with those ideas that are more effective and low
effort. The Ideas which has been prioritized will actually help
you to build the business into digital HR and will help in
growing quickly.
5. Evaluate performance:
Trying and applying digital technologies is great, but it will
not make much business if we donât focus on the outcomes.
Hence we need to analytically assess what works and what
doesnât. After all, the only way for us to improve is to solve
real problems with technological solutions that truly solve
these problems.
6. Culture is important:
Digital Technology alone cannot pave a way for HR
transformation but also involvement of all those employees
from different background is also essential. An organization
as to train and develop the employees in such a way that all
employeeâs mindset towards adopting Digital HR should be
positive.
II. NEED FOR THE STUDY
This study is undertaken to provide an insight on how the
digitization is going to benefit the organization in its HR
practice and also it highlights about certain barriers that an
organization could face while implementing the Digitization
in its HR processes. The study helps in terms of understanding
the emerging trends which came into existence due to
technological revolution and how it can be implemented in the
organization to increase the profits.
Mohammad Yusuf M, Dr. Shubha Muralidhar
Dept. of MBA, Bangalore Institute of Management Studies, Bangalore
Dept. of MBA, BMS College of Engineering, Bangalore
A Study on Digitization of HR and its Benefits
to Human Resource Management
International Journal of Management, Technology And Engineering
Volume IX, Issue V, MAY/2019
ISSN NO : 2249-7455
Page No: 5469
2. III. LITERATURE REVIEW
Pooja Dixit (2017) in her paper âDigitalization â An
emerging trend in human resource practicesâ says that the aim
of the paper was to discover the usage of IT Tools in HR
Practices by the Indian organization and also highlights the
upcoming value of digital gears in industries for making the
organizational culture more valuable. The study undertaken
was conceptual and sources of data collected is from
secondary sources. It is found that organizations are
converting their HR Practices into E-HR Practices
Mruthyanjaya Rao Mangipudi and Rajesh Vaidya (2018) in
their paper âA Study of Digitalization in HRM & its
effectiveness in execution of HR Strategies & Policiesâ States
that the purpose of the research was to investigate the merging
trends of HRM with reference to digitalization in HRM. This
study is conceptual and secondary data is used. It is found that
the organizations are judged not only on their quality of
services, financial health or workforce satisfaction.
Manju Amla & Prof. Meenakshi Malhotra (2017) in their
paper âDigital Transformation in HRâ states that the objective
of the study was to examine the concept of digital
transformation in HRM & how the new technology helps in
HR functions and also employees. In this study descriptive
research is used and secondary sources is used for data
collection. It is found that companies are using AI, Big data,
Cloud solutions etc. in their HR Functions.
Nishad Nawaz Meditheti (2017) in his paper âA
Comprehensive literature review of the digital HR research
filedâ states that the purpose of the research was to review the
HR and Technology concept and to come with recent trends in
HR & Technology. This research was conducted based on
secondary sources like reports and articles related to HR &
Technology. This study gives an overview of digital HR and
provides inputs for researchers.
Mrs. B. Kishori and B Divyabharathi (2017) in their paper
âA Study on digitalization in performance managementâ the
authors states that the objective of this paper is to explore
recent trends in HR practices and also states the effects of
technology on performance management. It is found that
digitalization helps in easy management of employee
performance and increases the accuracy of performance
appraisal
Mrs. A. Mary Francina (2018) in her paper âA study on
Digital HRâ states that the focus of this research is to identify
the impact of technology on Workforce and HRM. This paper
is based on secondary sources like literature review. It is
found that the technological revolution will increase the
organizational and employee performance
IV. RESEARCH METHODOLOGY
This Research is a conceptual and based on secondary
sources. The secondary data has been used from Journals,
research papers and from Internet to collect the data and to
have a better insight on the topic choose.
V. OBJECTIVES OF THE STUDY
1. To identify the benefits of using Digitization in HR
2. To determine the various barriers in Digitization of
HRM
3. To identify the various functions that has been
digitized due to technological revolution.
VI. DIGITIZATION AND HR
The Advanced HR is the computerized upheaval of HR
administrations and procedures through the methods for
social, mobile, analytical and cloud innovations.
Computerized HR speaks to an ocean change in both the
methodology and execution, despite the fact that it happens on
a continuum as associations advance. It is expected to
improve both representative experience and authoritative
accomplishment by changing the HR work from paper-based,
responsive and tedious to advanced first, portable and
upgraded. Its zones incorporate improving worker
commitment and maintenance and clearly increasing the
accomplishment of a business by persistently changing in a
spry manner.
Most associations are just starting to think about
computerized HR and work on a technique, however driving
organizations are grasping this better approach for directing
HR capacities, procedures and administrations. Similarly, as
with the computerized change of business all in all, advanced
HR is considered by business experts to be a basic piece of the
advanced change of business when all is said in done.
A. The Digital Disruption in HR
Computerized HR is a piece of the predominant scene of
advanced interruption. The advancements to carefully based
and versatile advances and weight from the achievement of
early adopters, including cloud-first new companies that are
disturbing old plans of action, have applied weight on
increasingly conventional organizations to move probably
some inheritance on-premises programming to cloud
frameworks to help current business forms and a superior
client experience. Venture programming merchants have
endeavored to help and even constrain these movements with
increasingly more cloud contributions, in ERP by and large,
however unambiguously in cloud-based human capital
administration and ability of the executives programming.
B. How Exactly Digital HR Functions:
Advanced HR, which may likewise be talked about to as
the digitization of HR, takes a cloud-first, versatile first,
information driven, cooperative, iterative way to deal with
HR administrations and procedures with expediting business
technique and worker experience. It uses cloud HCM and
ability of the executiveâs frameworks that component simpler
organization, programmed redesigns, less specialized
experiences, and by numerous records, better mechanization,
self-evident HR upgrades, costs investment funds and
expanded capacity to acclimatize present day advances.
Advanced HR utilizes information and examination to
gauge development at each phase of the representative life
International Journal of Management, Technology And Engineering
Volume IX, Issue V, MAY/2019
ISSN NO : 2249-7455
Page No: 5470
3. cycle, from enrollment to learning and improvement to
maintenance and off boarding, with the point of turning
immediately when a predefined technique does not work. It
utilizes lightweight innovation to help center around deft
change, with apparatuses, for example, beat studies.
Computerized HR profit by online life, for example, internet
based life selecting and by incorporating, where proper, web
based life in learning techniques. Furthermore, it grasps the
consumerization of HR, reconsidering HR self-administration
as a really easy to use understanding for representatives.
Computerized HR isn't just about changing HR in fact.
Since a standout amongst the most significant destinations of
computerized HR is to adopt a strategic strategy to HR, it
mirrors a proactive way to deal with line up every one of the
capacities and objectives of HR with corporate objectives and
partner with different partners to decide how best to do as
such.
VII. ADVANTAGES OF DIGITIZATION IN HR
The submitting Advanced HR can profit in association in
number of ways. Some of them are:
a) Smart Recruitment:
About 40% of organizations are utilizing some type of AI
in HR. Association resembles IBM, Facebook, GE, SAP and
Hilton worldwide are as of now utilizing this distinct
advantage innovation to screen, meeting and enlist new
ability. What Artificial knowledge (AI) does, it streamlines
the capacities inside the organization and gradually builds up
the insight to work more intelligent without supplanting the
human component in HR Department. Huge numbers of the
Organizations are utilizing HR Bots which makes to enroll the
competitors effectively. There are a portion of the counterfeit
selecting instruments that are making the organizations
progressively gainful, better and reasonable obviously. The
absolute most prominent Are-Mya (My Recruiting Assistant),
Arya, Olivia,
b) Ease out the Screening and Interview process:
Computerized reasoning is additionally giving some
assistance in mechanizing the meeting procedure by
evaluating candidates word decisions, discourse examples
and outward appearances. Artificial intelligence can
transform a 15 minutes' video meet into a lot of 20,000
information focuses on facial developments, advancement
and word decision to assess a competitor. Devices like Amy
and Clara Labs are utilized by organizations to calendar
interviews, work gatherings rapidly, consistently and without
squandering any mediation time. Man-made reasoning is
helping Human asset office in screening process by
examining the past progress records for an occupation profile
and afterward survey the accessible ability pool to recognize
the most appropriate applicants with the sufficient range of
abilities and experience.
c) Enhance Onboarding background:
Man-made consciousness is helping HR in building up the
early introduction solid and positive by reclassifying the
entire representative joining process by making adventure
maps, directly from pre-contracting evaluation and meeting to
Onboarding and workers Induction. Chat bots are utilized by
the worker and at whatever point they concoct any inquiry,
they can ask the equivalent with the HR Bot and thus it will
answer it all the more successfully, liberating HR to deal with
more representatives
d) Data security and Transparency:
Advancements has the ability to learn whether certain
debasement, pay off or other potential illicit things is going to
be embraced by a worker. Apparatuses, for example, Big Data
and In-memory innovation lets organizations to check
gigantic measures of non-organized information (for example
messages, writings, examined solicitations and so on.) and
look for basic pieces of information to unfortunate and
possibly illicit exercises, that defend the lawful affirmation to
the investors and the organization workers. EY is at present
utilizing such sort of an apparatus.
e) Increase Efficiency:
Robotic/Mechanical Process Automation is a shrewd
Artificial Intelligence which access all the HR related for
giving better administrations to its workers. This RPA
Basically helps the association for quick handling of different
sorts of work like information preparing, sending mails and so
on. RPA has supplanted crafted by 482 out of 500 all out
specialists. Progressively adaptable workforce bringing about
more joyful and increasingly powerful representatives.
f) Enhance work environment learning:
Cloud profitability arrangements, for example, Microsoft
365 can assist representatives with working and team up at
pinnacle capability without sitting around idly by making an
increasingly streamlined workplace. Simulated intelligence
devices can likewise help HR Operations to make changed
vocation improvement involving distinctive learning and
advancement programs, that will upgrade worker profitability
and occupation fulfillment and furthermore cuts down
work-prompted weight level and representative turnover and
numerous different advantages. Artificial intelligence devices
give moment input; screen their upgrades routinely; suggest
methods for development and accomplishing development in
their activity jobs.
g) Creates Organizations to be competitive:
Computerized movement has not remained a decision, it
has turned into a fundamental piece of aggressive and
enduring procedures. The way to the great innovation is that it
works for you. Whatever the size of your business, begin with
a solid computerized change methodologies and pick the
correct innovation to accommodate your business
destinations.
VIII. BARRIERS IN DIGITIZATION OF HRM
1. Resistance to Change:
Whenever any new technology is adopted, the employees
starts to resist towards that change. This Resistance to change
from employeeâs side creates a greater barrier in terms of
upgrading
2. Fear of Failure:
International Journal of Management, Technology And Engineering
Volume IX, Issue V, MAY/2019
ISSN NO : 2249-7455
Page No: 5471
4. The fear of failure among employees creates impact on
making use of new technology. The employees should take
things as challenge and should develop their skill sets to
tackle such weakness.
3. Unskilled Employees:
When the organization doesnât as right talented employees
then it fails to make use of such digital transformation. Digital
transformation requires highly skilled people to handle the
various activities so hence absence of skilled employees
becomes a barrier
4. Improper Plans:
When ineffective plans are made which does not bring any
fruit to the organization or which doesnât look forward to
improve the skillsets of employees then it will also bring in a
failure in adopting the digital transformation.
5. Support from the Leader:
A leader should be there to support and motivate the
employees to adopt the new technology. The leader should
support his team members and should give necessary
instructions whenever it is required to handle the work in an
effective manner.
6. Right Talent for Right Job:
One of the major constraint is to get the right talented
person for the Job. The HR manager should have to check
what are the skillsets that are required for handling the digital
HR so that he can hire a right person and it is a critical task for
any HR Manager.
IX. AREAS/FUNCTIONS IN HR THAT IS DIGITIZED
1. A conclusion extensions Recruitments and Selection:
The Artificial intelligence as paved way for recruiting right
candidates for the Job and due to which HR Bots as came into
existence. By making use of HR Bots we can shortlist a
candidate and can fix an appointment for an interview and in
turn the HR Bot will give intimation about the candidate
Profile to the HR Manager.
2. Training of Employees:
The HR Bots will also help the employees to access various
websites for getting trained on specific skillsets and
Knowledge. Also it will suggest them about various skill
assessment websites which will help them test their
knowledge and improve their skills.
3. Enrollment to Employee Benefits:
Due to Digitalization now employees can enroll for the
various benefits like Insurance, PF and ESI online which in
turn reduces time consumption.
4. Performance Management:
Tracking of employees work status as become very easy
due to use of technology and due to which we can check how
much part of work does an employee as completed and what is
remaining. Whenever it is found the performance or out of
employee getting reduce we can give immediate feedback to
the respective employee.
5. Rewards and Recognition:
Whenever an employee completes his work or a project
successfully the organization can give him reward in the form
of E-Certificates and can also recognize him by updating in
companyâs website as star employee of the month along with
his photograph. This will create employee satisfaction and
engagement.
X. FINDINGS
1. Digital Transformation in HR helps the organization
to increase its efficiency and performance.
2. HR Bots are used in organizations for recruitment,
resolving problems and to avail employee benefits.
3. Making use of Digital HR actually creates an
organization to be competitive.
4. Hiring of right candidate for the Job involving Digital
HR is a critical task.
5. The Presence of Resistance to change among
employees creates a major barrier in terms of
adopting to the latest technology.
XI. CONCLUSION
Digital HR Means converting the traditional HR Functions
into Functions which makes use of new technology that is
making use of social media, HR Bots, new upgraded
softwareâs etc. Every organization should look forward
towards digital transformation so to improve its performance.
Digital transformation brings in a greater benefit in terms of
increasing profits and sales of organization. Transforming HR
Functions into Digital will improve employeeâs performance
and reduces a number of Errors. But it also incurs lot of cost
for the transformation from traditional HR to digital HR and
thus creates a barrier for some small organization to opt for
such transformation
REFERENCES
A. Journals:
1. Pooja Dixit (2017), âDigitalization â An Emerging trend
in Human Resource practicesâ, imperial journal of
interdisciplinary research, Vol-3, Issue-4,
ISSN:2454-1362.
2. Mruthyanjaya Rao Mangipudi and Rajesh Vaidya (2018),
âA Study of Digitalization in HRM & its effectiveness in
execution of HR strategies and policiesâ, Helix, Vol.8(6):
4220-4222, P-ISSN:2277-3495.
3. Manju Amla and Prof. Meenakshi Malhotra (2017),
âDigital Transformation in HRâ, International Journal of
Interdisciplinary & Multidisciplinary studies, Vo.4, No.3,
PP- 536-544, ISSN:2519-7908.
4. Nishad Nawaz Maditheti (2017), âA Comprehensive
Literature Review of the Digital HR Research filedâ,
Information and knowledge Management, Vo.7, No.4,
ISSN:2224-5758.
5. Mrs.B.Kishori and B Diyabharathi, A Study on
Digitalization in Performance Management, IJARIIE,
Vol-3, Issue-6, ISSN: 2395-4396.
6. Mrs.A.Mary Francina (2018), âA Study on Digital HRâ,
International Journal of computer and mathematical
sciences, Vol.7, Issues.2, ISSN: 2347-8527.
B. Websites:
https://www.digitalhrtech.com/guide-hr-digital-transf
ormation-hr-transformation/
https://www.digitalhrtech.com/back-to-basics-what-is
-digital-hr/
International Journal of Management, Technology And Engineering
Volume IX, Issue V, MAY/2019
ISSN NO : 2249-7455
Page No: 5472
5. AUTHORS PROFILE
Mohammad Yusuf M,
Assistant Professor
Dept. of MBA
Bangalore Institute of Management Studies
Ph No. 8792727992
Email ID: yusufm722@gmail.com
Mohammad Yusuf M has around one and half years of teaching experience.
He is specialized in the field of HR and Marketing. Mohammad Yusuf
holds Bachelor of Business Management(HR) from Vivekananda Institute of
Management Studies, Bangalore and Two Yearsâ Mastersâ Programme in
Business Administration (HR & Marketing) from SJB Institute of
Technology.
Mohammad Yusuf has presented papers at both National and International
Conferences. Mohammad Yusuf is currently working as a faculty in the
Department of Management Studies, Bangalore Institute of Management
Studies, Bangalore.
Dr. Shubha Muralidhar
Assistant Professor
Dept. of MBA, BMS College of Engineering
Email ID: shubha.muralidhar@gmail.com
Dr. Shubha Muralidhar has around 20 years of teaching
experience. She is specialized in the field of HR. Dr. Shubha holds Bachelor
of Science (Electronics) from Mount Carmel College, Bangalore, Two yearsâ
Mastersâ Programme in Business Administration from Mount Carmel
Institute of Management and M. Com from Bangalore University. She has
also completed M.Phil. in Management. She did her Ph.D. from Bharathiar
University, Coimbatore in the area of Benchmarking HR practices which is a
blend of both HRM and TQM.
Dr. Shubha Muralidhar has presented papers at both National and
International Conferences. She has contributed articles to refereed journals
of national and international repute. She has also co-authored a book on
âChange and Knowledge Managementâ catering to the needs of the post
graduate management students. She has coordinated International and
National conferences several times. She also has conducted one week
programme on âSocial Entrepreneurshipâ under the prestigious banner of
Global initiative and Academic Network (GIAN), a Government of India
Initiative. She has also participated in MOOCs courses conducted by IIT
Bombay.
Dr. Shubha is also a trainer and has discussed the utility of psychometric
tests at work. She has delivered lectures at the Bangalore Management
Association and Whitefield association recently. She has delivered lectures
on âOutcomes based education in Managementâ. Her areas of interest
include OB, Micro Economics, Training and Development and TQM. Dr.
Shubha is currently working as a faculty in the Department of Management
Studies and Research Centre, BMS College of Engineering, Bangalore.
International Journal of Management, Technology And Engineering
Volume IX, Issue V, MAY/2019
ISSN NO : 2249-7455
Page No: 5473