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The Role of HR on Digital Transformation
Uğur
Gürbüz
2
Index
1. Introduction
2. Literature Review – Introduction to The Role of HR on Digital Transfromation
a) Literature Review – Digital Transformation as a concept
b) Literature Review – Human Resources as a concept
c) Literature Review – The Role of Human Resources on Digital Transformation
3. Sources
a) Article 1 - Digital Transformation and Its Impact on HR (Quantitative Research)
b) Article 2 - A Study on Innovative Practices in Digital Human Resource Management (Secondary Data Collection)
c) Article 3 - Do line managers’ have ‘linking pin’ in HR roles?
d) Thesis - Human Resource Management in a Digital Era (Qualitative Research)
e) Case Study - HR Digital Transformation (SAP)
4. Conclusion
5. References
3
The Role of HR on Digital Transformation
If the rate of change on the outside exceeds
the rate of change on the inside, the end is near.
”
“
Jack Welch
Former CEO – G.E.
4
Introduction
The HR world is changing fast via technology and
HR employees have to adapt themselves into this
situation not to be out of box.
(Deo, 2017)
Digitalisation changes the business and HR
professionals always have a seat at the table to
take an active role for transformation.
(Green, 2018)
Talents have a big impact on organisations in
terms of innovation and success. At this point, HR
plays a role to bring new talents to the company.
(Moreno, 2016)
Companies have to develop and innovate human
resource practices in order to sustain in the
competitive industry.
(Tripathi & Sigh, 2017)
Digital Transformation is effecting not only
external customers but also internal customers.
Namely, our employees. This is why, HR plays a
big role on this.
(Deo, 2017)
5
Digital Transformation
Transforming an information from a phsical
format to digital one is digitisation. However,
Digitalisation is leveraging digitisation to run
business processes more efficiently.
(Burket, 2017)
Digital Transformation is a digital integrations in
all areas of an organisation like culture,
experiment and operation.
(Enterpriserproject, 2018)
Digital Transformation is the main factor of
change via internet/cloud systems which is a new
way to information exchange more efficiently for
more people.
(Tripathi & Sigh, 2017)
Digital Transformation is defined as the use of
technology to radically improve performance of
reach of enterprises.
(Capgemini, 2011)
Digital Transformation Strategies have 4 dimensions:
- Use of technologies
- Changes in value creation
- Structural changes
- Financial aspects
(Matt, Hess & Benlian, 2015)
Digital transformation is a social, mobile, analytics
or cloud induced change that significantly affects
three or more dimensions on individual, firm,
and/or societal level.
(Tolboom, 2016)It is expected that the market size of digital
transformation will grow from $150 billion to $369
billion in coming 5 years.
(Tolboom, 2016)
6
Human Resources
Human resources management is an important
approach to employement and managing
people.
(Armstrong, 1977)
HR departments and units in organizations have activities
like employee recruitment, training and development,
performance appraisal, and rewarding/compensation,
employee motivation, pay-roll.
(Paauwe & Boon, 2009)
Human Resource is a term which is evolved from
personnel.
(Heathfield, 2018)
2018 trends: passive candidates, remote
workforce, gamification, blind hiring and future-
proofing employees
(Millet, 2017)
7
The Role of HR on Digital Transformation
Dave Ulrich thinks there are 4 key roles played by HR in
any organisation, which can be considered as a starting
point for digital transformation for HR: Strategic Partner,
Change Agent, Administrative Expert, Employee Champion
(Hassan, Mansor, Rahman, Kelena 2017)
Digital transformation of a business is not only
about use of technology in physical things but also
it is about the company culture.
(Jones, 2016)
Since digital technology started to have an effect
on most areas of industry, like easy
communication via laptops, mobiles, it is clearly
said that it influences humans at work, especially,
human relations and work environment.
(Kumar, 2016)
HR must contribute more digital talents to the company to
have a good digital journey because digital talents inspire
change, leverage technology, innovate, increase speed and
agility in the company.
(Hart, 2015)
Digitalisation changes the business and HR professionals
always have a seat at the table to take an active role for
transformation.
(Bengtsson & Bloom, 2018)
8
The Role of HR on Digital Transformation
Sources
different sources were used in this
research: 6 articles, 2 thesises, 1
handbook, 1 case study and 8 internet
researchs.
18
6
Articles
2
Thesises
1
Handbook
1
Case Study
8
Internet Researchs
9
The research sums up that digital revolution has a positive
impact on human resource factors and is bound to play an
influential role at the workplace.
Article 1
Summary
The aim of this paper is to examine the role of
technology and innovational practices in digital era.
Hypothesis
H1: Digital revolution impacts positively on human resource
development.
H2: Digital revolution has an effect on the talent management.
H3: Digital revolution n influences performance at work.
Quantitative Research
Questionary method is used that 30 respondant joined.
Conclusion
Digital Transformation and Its Impact on HRM
10
There is need for transformation not only in terms of policies
or structure but also the way it operates.
Article 2
Summary
This research paper analyses the importance of digital revolution
in the Mauritian public service and its impact on related human
resource factors like human resource development, talent and
performance management.
Findings
There are many findings from literature. Eg: Firms can achieve
sustained competitive advantages by accumulating resources that
produce economic value, are relatively scarce, and can sustain
competitive attempts at imitation, acquisition, or substitution.
Research Method
Secondary data collection is used. An information search was
made on e-databases with the purpose of accessing content
related to study. The key words used for this search were, HRM
practices, digital HRM, technology and innovative HR practices
etc.
Conclusion
A Study on Innovative Practices in Digital Human Resource Management
11
Do line managers’ have ‘linking pin’ in HR roles?
Factors such as desire, self-efficacy, and HR support have
been identified as the driving force for line managers to get
involved in HR initiatives.
Article 3
Summary
The present article aims to identify the possible line
managers’ involvement factors in human resource
initiatives and its ‘linking pin’ to the HR roles.
Methodology
The paper intends to provide a conceptual review of the past
literature in the areas of HR roles and line managers and further
justify the proposed conceptual framework that will move this
work further
Findings
The review also showed that HR devolution to line
managers will boost line managers’ participation and
responsibility to practice HR roles at the workplace.
Conclusion
12
Human Resource Management in a Digital Era
Digitalization is perceived as an ongoing change
in society that creates external pressures for change within
organizations. It was described as creating a fast-changing
environment to which the organization needs to adapt in
order to survive.
Thesis
Summary
The objective of this thesis was to delve deeper into
human resource management in a digital era.
Research Questions
• How do HR managers make sense of digitalization?
• What do they perceive as the main challenges?
Qualitative Research
In-depth interviews were used with 12 HR Managers
which takes 60 minutes for each.
Conclusion
13
HR Digital Transformation
This transform let SAP to reduce the complexity around the
functions for which HR is responsible, while increasing
internal customer satisfaction.
Case Study
Company Overview
For 44 years, SAP SE has been supplying enterprise
application software. 77,000 employees working in 120
countries and about 300,000 customers worldwide
Aim of Study
• Examine SAP’s mission to transform its HR operations and
solutions to cloud computing
• Explore how the company used design thinking methodology
• Reveal how SAP HR’s quality gates enable success and adoption
of new tools and business practices across the global
organization
Objectives of SAP
• Moving all systems to cloud
• Training employees on digital transformation field
• Facilitating the communication amoung employees all over
the world
• Creating a flexibility for employees. Like remote-working.
• Having 3 principles: Simplification, standardization,
customer satisfaction.
• Providing elearning to all employees.
• Talent management
Improving leadership skills of employees.
Conclusion
14
Conclusion
Digital Transformation provides a competitive advantage to
companies for sustainability so companies need to change
their culture, business models etc.
HR plays a main role on this transformation because HR is
the department communicating the employees in terms of
the company culture, trainings, motivation etc. and can
create a change on employees’ vision.
15
References
• Kumar, B.N. Digital Transformation and Its Impact on Human Resource Management. researchgate.net (August 2016)
• Tripathi, R.T. & Singh, P.K. A Study on Innovative Practices in Digital Human Resource Management. researchgate.net
(March 2017)
• Paauwe, J. & Boon, C. Strategic HRM: A critical review. Researchgate.net (January 2009)
• Hassan, M.A. & Mansor, N.N.A. & Rahman, W.M.Z.W.A. & Kelana, B.W.Y. Do line managers’ have ‘linking pin’ in HR
roles?. researchgate.net (January 2015)
• Westerman, G. Digital Transformation: A Roadmap for Billion-Dollar Organizations. Capgemini Consulting (July 2017)
• Matt, C. & Hess, T. & Benlian, T. Digital Transformation Strategies. Bus Inf Syst Eng 57(5):339–343 (July 2015)
• Tolboom, I. The Impact of Digital Transformation. Delft University of Technology, Faculty of Technology, Policy and
Management. Master Thesis. Netherland. 2016
• Bengtsson, C. & Bloom, M. Human Resource Management in a Digital Era. Lund University. MBA. Sweden. 2018
• Jones, K. SAP in 2016. HR Digital Transformation. Bersin by Deloitte
• Armstrong, M. Handbook of Human Resource Management Practice. Kogan Page Limited. 1977
• Deo, T.P. The Four Roles of HR and Digital Transformation. https://www.capgemini.com/2017/11/the-four-roles-of-hr-
and-digital-transformation/ . (08.09.2017)
• Green, A. Time for HR to bite the bullet on digital transformation.https://www.insidehr.com.au/hr-digital-
transformation/ . (26.08.2016)
• Moreno, H. Accelerate Digital Transformation To Achieve Strategic
HR.https://www.forbes.com/sites/forbesinsights/2016/08/26/accelerate-digital-transformation-to-achieve-strategic-
hr/#1714ca1e4f4b . (26.08.2016)
• Enterprisersproject. What is digital transformation?.https://enterprisersproject.com/what-is-digital-transformation
• Heathfield, S.M. What Is a Human Resource?.https://www.thebalancecareers.com/what-is-a-human-resource-
1918144 . (30.04.2018)
• Millet, J. The 2018 Human Resources Trends To Keep On Your
Radar.https://www.forbes.com/sites/forbeshumanresourcescouncil/2017/10/26/the-2018-human-resources-trends-
to-keep-on-your-radar/#747b242421b3 . (26.10.2017)
• Hart, B. The Role of HR in Digital Transformation.http://www.weareatmosphere.com/human-resources-digital-
transformation/ . (22.06.2015)
• Burkett, D. Digitisation and Digitalisation: What Means What?.https://workingmouse.com.au/innovation/digitisation-
digitalisation-digital-transformation . (19.12.2017)

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The Role of HR on Digital Transformation

  • 1. The Role of HR on Digital Transformation Uğur Gürbüz
  • 2. 2 Index 1. Introduction 2. Literature Review – Introduction to The Role of HR on Digital Transfromation a) Literature Review – Digital Transformation as a concept b) Literature Review – Human Resources as a concept c) Literature Review – The Role of Human Resources on Digital Transformation 3. Sources a) Article 1 - Digital Transformation and Its Impact on HR (Quantitative Research) b) Article 2 - A Study on Innovative Practices in Digital Human Resource Management (Secondary Data Collection) c) Article 3 - Do line managers’ have ‘linking pin’ in HR roles? d) Thesis - Human Resource Management in a Digital Era (Qualitative Research) e) Case Study - HR Digital Transformation (SAP) 4. Conclusion 5. References
  • 3. 3 The Role of HR on Digital Transformation If the rate of change on the outside exceeds the rate of change on the inside, the end is near. ” “ Jack Welch Former CEO – G.E.
  • 4. 4 Introduction The HR world is changing fast via technology and HR employees have to adapt themselves into this situation not to be out of box. (Deo, 2017) Digitalisation changes the business and HR professionals always have a seat at the table to take an active role for transformation. (Green, 2018) Talents have a big impact on organisations in terms of innovation and success. At this point, HR plays a role to bring new talents to the company. (Moreno, 2016) Companies have to develop and innovate human resource practices in order to sustain in the competitive industry. (Tripathi & Sigh, 2017) Digital Transformation is effecting not only external customers but also internal customers. Namely, our employees. This is why, HR plays a big role on this. (Deo, 2017)
  • 5. 5 Digital Transformation Transforming an information from a phsical format to digital one is digitisation. However, Digitalisation is leveraging digitisation to run business processes more efficiently. (Burket, 2017) Digital Transformation is a digital integrations in all areas of an organisation like culture, experiment and operation. (Enterpriserproject, 2018) Digital Transformation is the main factor of change via internet/cloud systems which is a new way to information exchange more efficiently for more people. (Tripathi & Sigh, 2017) Digital Transformation is defined as the use of technology to radically improve performance of reach of enterprises. (Capgemini, 2011) Digital Transformation Strategies have 4 dimensions: - Use of technologies - Changes in value creation - Structural changes - Financial aspects (Matt, Hess & Benlian, 2015) Digital transformation is a social, mobile, analytics or cloud induced change that significantly affects three or more dimensions on individual, firm, and/or societal level. (Tolboom, 2016)It is expected that the market size of digital transformation will grow from $150 billion to $369 billion in coming 5 years. (Tolboom, 2016)
  • 6. 6 Human Resources Human resources management is an important approach to employement and managing people. (Armstrong, 1977) HR departments and units in organizations have activities like employee recruitment, training and development, performance appraisal, and rewarding/compensation, employee motivation, pay-roll. (Paauwe & Boon, 2009) Human Resource is a term which is evolved from personnel. (Heathfield, 2018) 2018 trends: passive candidates, remote workforce, gamification, blind hiring and future- proofing employees (Millet, 2017)
  • 7. 7 The Role of HR on Digital Transformation Dave Ulrich thinks there are 4 key roles played by HR in any organisation, which can be considered as a starting point for digital transformation for HR: Strategic Partner, Change Agent, Administrative Expert, Employee Champion (Hassan, Mansor, Rahman, Kelena 2017) Digital transformation of a business is not only about use of technology in physical things but also it is about the company culture. (Jones, 2016) Since digital technology started to have an effect on most areas of industry, like easy communication via laptops, mobiles, it is clearly said that it influences humans at work, especially, human relations and work environment. (Kumar, 2016) HR must contribute more digital talents to the company to have a good digital journey because digital talents inspire change, leverage technology, innovate, increase speed and agility in the company. (Hart, 2015) Digitalisation changes the business and HR professionals always have a seat at the table to take an active role for transformation. (Bengtsson & Bloom, 2018)
  • 8. 8 The Role of HR on Digital Transformation Sources different sources were used in this research: 6 articles, 2 thesises, 1 handbook, 1 case study and 8 internet researchs. 18 6 Articles 2 Thesises 1 Handbook 1 Case Study 8 Internet Researchs
  • 9. 9 The research sums up that digital revolution has a positive impact on human resource factors and is bound to play an influential role at the workplace. Article 1 Summary The aim of this paper is to examine the role of technology and innovational practices in digital era. Hypothesis H1: Digital revolution impacts positively on human resource development. H2: Digital revolution has an effect on the talent management. H3: Digital revolution n influences performance at work. Quantitative Research Questionary method is used that 30 respondant joined. Conclusion Digital Transformation and Its Impact on HRM
  • 10. 10 There is need for transformation not only in terms of policies or structure but also the way it operates. Article 2 Summary This research paper analyses the importance of digital revolution in the Mauritian public service and its impact on related human resource factors like human resource development, talent and performance management. Findings There are many findings from literature. Eg: Firms can achieve sustained competitive advantages by accumulating resources that produce economic value, are relatively scarce, and can sustain competitive attempts at imitation, acquisition, or substitution. Research Method Secondary data collection is used. An information search was made on e-databases with the purpose of accessing content related to study. The key words used for this search were, HRM practices, digital HRM, technology and innovative HR practices etc. Conclusion A Study on Innovative Practices in Digital Human Resource Management
  • 11. 11 Do line managers’ have ‘linking pin’ in HR roles? Factors such as desire, self-efficacy, and HR support have been identified as the driving force for line managers to get involved in HR initiatives. Article 3 Summary The present article aims to identify the possible line managers’ involvement factors in human resource initiatives and its ‘linking pin’ to the HR roles. Methodology The paper intends to provide a conceptual review of the past literature in the areas of HR roles and line managers and further justify the proposed conceptual framework that will move this work further Findings The review also showed that HR devolution to line managers will boost line managers’ participation and responsibility to practice HR roles at the workplace. Conclusion
  • 12. 12 Human Resource Management in a Digital Era Digitalization is perceived as an ongoing change in society that creates external pressures for change within organizations. It was described as creating a fast-changing environment to which the organization needs to adapt in order to survive. Thesis Summary The objective of this thesis was to delve deeper into human resource management in a digital era. Research Questions • How do HR managers make sense of digitalization? • What do they perceive as the main challenges? Qualitative Research In-depth interviews were used with 12 HR Managers which takes 60 minutes for each. Conclusion
  • 13. 13 HR Digital Transformation This transform let SAP to reduce the complexity around the functions for which HR is responsible, while increasing internal customer satisfaction. Case Study Company Overview For 44 years, SAP SE has been supplying enterprise application software. 77,000 employees working in 120 countries and about 300,000 customers worldwide Aim of Study • Examine SAP’s mission to transform its HR operations and solutions to cloud computing • Explore how the company used design thinking methodology • Reveal how SAP HR’s quality gates enable success and adoption of new tools and business practices across the global organization Objectives of SAP • Moving all systems to cloud • Training employees on digital transformation field • Facilitating the communication amoung employees all over the world • Creating a flexibility for employees. Like remote-working. • Having 3 principles: Simplification, standardization, customer satisfaction. • Providing elearning to all employees. • Talent management Improving leadership skills of employees. Conclusion
  • 14. 14 Conclusion Digital Transformation provides a competitive advantage to companies for sustainability so companies need to change their culture, business models etc. HR plays a main role on this transformation because HR is the department communicating the employees in terms of the company culture, trainings, motivation etc. and can create a change on employees’ vision.
  • 15. 15 References • Kumar, B.N. Digital Transformation and Its Impact on Human Resource Management. researchgate.net (August 2016) • Tripathi, R.T. & Singh, P.K. A Study on Innovative Practices in Digital Human Resource Management. researchgate.net (March 2017) • Paauwe, J. & Boon, C. Strategic HRM: A critical review. Researchgate.net (January 2009) • Hassan, M.A. & Mansor, N.N.A. & Rahman, W.M.Z.W.A. & Kelana, B.W.Y. Do line managers’ have ‘linking pin’ in HR roles?. researchgate.net (January 2015) • Westerman, G. Digital Transformation: A Roadmap for Billion-Dollar Organizations. Capgemini Consulting (July 2017) • Matt, C. & Hess, T. & Benlian, T. Digital Transformation Strategies. Bus Inf Syst Eng 57(5):339–343 (July 2015) • Tolboom, I. The Impact of Digital Transformation. Delft University of Technology, Faculty of Technology, Policy and Management. Master Thesis. Netherland. 2016 • Bengtsson, C. & Bloom, M. Human Resource Management in a Digital Era. Lund University. MBA. Sweden. 2018 • Jones, K. SAP in 2016. HR Digital Transformation. Bersin by Deloitte • Armstrong, M. Handbook of Human Resource Management Practice. Kogan Page Limited. 1977 • Deo, T.P. The Four Roles of HR and Digital Transformation. https://www.capgemini.com/2017/11/the-four-roles-of-hr- and-digital-transformation/ . (08.09.2017) • Green, A. Time for HR to bite the bullet on digital transformation.https://www.insidehr.com.au/hr-digital- transformation/ . (26.08.2016) • Moreno, H. Accelerate Digital Transformation To Achieve Strategic HR.https://www.forbes.com/sites/forbesinsights/2016/08/26/accelerate-digital-transformation-to-achieve-strategic- hr/#1714ca1e4f4b . (26.08.2016) • Enterprisersproject. What is digital transformation?.https://enterprisersproject.com/what-is-digital-transformation • Heathfield, S.M. What Is a Human Resource?.https://www.thebalancecareers.com/what-is-a-human-resource- 1918144 . (30.04.2018) • Millet, J. The 2018 Human Resources Trends To Keep On Your Radar.https://www.forbes.com/sites/forbeshumanresourcescouncil/2017/10/26/the-2018-human-resources-trends- to-keep-on-your-radar/#747b242421b3 . (26.10.2017) • Hart, B. The Role of HR in Digital Transformation.http://www.weareatmosphere.com/human-resources-digital- transformation/ . (22.06.2015) • Burkett, D. Digitisation and Digitalisation: What Means What?.https://workingmouse.com.au/innovation/digitisation- digitalisation-digital-transformation . (19.12.2017)

Editor's Notes

  1. Put future studies and limitations etc. Organiztional commitment ı da araştır dedi.