Research Based Learning -2

The Impact of digital transformation on

HR Practices

Submitted by: -
Rimlal Sharma (2022004903)

Department- MANAGEMENT
Sharda School of Business Studies

Faculty Mentor/Guide
Name:-Satendra
Singh

Session: August 2022-23

 Declaration

This is to certify that I have downloaded 2 research papers from recent indexed
journals and the review summary entitled

“The Impact of digital transformation on

HR Practices”
has been prepared by me. The report is based on the research publications
downloaded and reviewed during the Session.

Signature of the candidate

Name:Rimlal Sharma
 Acknowledgement

I have worked with my full capabilities and helped my own special ways

to the success and completion of this project.

I wish to have deep acclamation to Mister Satendra Singh for

guiding us with all aspects of the research paper

 Preface

I am preparing this research paper as a part of our RBL-2 on the topic “The Impact of
digital transformation on
HR Practices”
The basic goal behind this research paper is to understand how digital transformation
affects the human resource practices. This research paper focused on the various studies
of financial literacy on how it helps the world. The primary data of study is collected
through going through the 15 research papers which are similar and analyzing it to get the
important data necessary
THE Impact Of Digital Transformation On HR Practice

Sharda University Plot no 32, 34, Knowledge Park III,

Greater Noida, Uttar Pradesh 201310

Abstract

The introduction of computers in every field of life as the ever-expanding and

widespread communication technology, cause significant changes especially in
business life. With the internet and technology changing our lives radically, this
change has also affected the management forms of enterprises significantly. In
today’s enterprises, it is seen that the traditional methods used for the management
of business processes are no longer sufficient. Business processes that are
complicated in enterprises have become manageable only by using technology.
Rapid developments in the internet technology have also diversified the
understanding and operation of human resources management. Data and resource
management of enterprises is more systematic and easily accessible in a digital
environment. This situation has enabled most of the work done by the human
resources department to be carried out in the digital media. Human Resources
Management (HRM) has become Digital Human Resources Management (Digital
HRM) due to this transformation. Enterprises now use digital human resources
systems while carrying out their human resources functions. In this respect, while
enterprises offer many innovations in the digital field to consumers, human
resources management also applies similar innovations to employees or candidates.
Therefore, digital transformation in human resource processes is more effective
when used as part of a broader employment process. In this context, this study
focuses on the use of digital applications in human resources management of
enterprises. However, the reflections of digitization on human resources processes
have also been elaborated.

Introduction
The world is continually changing, every moment circumstances change (situation,
environment, technology, etc.), any change affects the organization, whether in
decision making or any area of the organization's management. We are witnessing
enormous changes brought by technology hence creating a completely different
flow; it changed the approach and business prospects. In fact, every day we have a
fusion of technology within every sphere of life, in every day more and
more we adapt our daily actions according to these changes, and as a result, technology
facilitates our life in general. This made it one of the most current and studied topics
continuously. Any organization tends to have in its ranks people with the right skills and
abilities to perform the certain tasks, but this is only one of many requirements of the HR
department. An obvious problem in all organizations today is the human resources
management, the maintenance of the employees, fluctuation stoppage, evaluation etc.
Today organizations use advanced methods and systems for human resource management.
The impact of technology especially the information technology is very emphasized in the
economy knowledge where information is the primary input. Human resource management
has changed over the years from the traditional style of HR creating a human resources
strategy, to the impact of technology on improving the quality of human resource
performance.

Keywords

Digital transformation, Human resource development, Talent management and

performance management, Process, Technology, Digitalisation, HRM Practices,
Organisation.

Problem Statement

The concern here is on the statement that digital transformation is likely to impact on
human resource factors.
The general argument stands as such:
The shift from technological diffusion to digital transformation must have an effect on
human resources. Such effects are bound to affect the performance and quality of human
resources.
If digital transformation impacts positively on human resources, there is likely to affect
visible changes in performance, output, service quality, talent development, among others.
This is where the problem lies. It is all too easy to assume that digital transformation will
positively impact on human resource factors since this has not been correctly identified and
tested.
Following the problem statement research questions can be identified. They are stated
below.

What is digital transformation in essence?

How does digital transformation impact on human resource development?
What is the effect of digital transformation on the talent management?
How does digital transformation influence performance at work?
Based on these assumptions, a literature review has been carried out to see how it answers
the research questions from a theoretical point of view and how it applies to secondary or
already published research.

Literature Review

Digital transformation is described as the profound and accelerating transformation of

business activities, processes, competencies and models to fully leverage the changes and
opportunities of digital technologies and their impact across society in a strategic and
prioritised way (Digital Transformation Guide, 2015) . The development of new
competencies revolves around the capacities to be more agile, people-oriented, innovative,
connected, aligned and efficient with present and future shifts in mind.
According to Bloomberg (2014), companies revealed the surprising level of ignorance in
the definition of digital transformation known as “the realignment of, or new investment in,
technology and business models to more effectively engage digital customers at every
touchpoint in the customer experience lifecycle . Companies needed to think of Digital
Transformation as a “formal effort to renovate business vision, models, and investments for
a new digital economy.”
King (2013) stated that businesses go through digital transformation when they have failed
to evolve . When a business evolves with its market, continually refreshing products and
proposition, reaching new sets of customers and growing the value of existing ones, it
needs no transformation. A similar contribution comes from Verdino (2015) who sums up
digital transformation as the practice which closes the gap between what digital customers
already expect and what analogue businesses actually deliver .

Research Objective

The current study aims to fulfil following objectives:

1. To understand the need of digital transformation in the HRM function.
2. To understand the current role of digitization in the HRM function of the organizations.
3. To comprehend the working and fruitful execution of digital apparatuses in HRM
practices in India.
The SMACI concept of digital transformation

The smart, mobile connected digital world is driving companies to build and support an
entirely new technology infrastructure. This “technology web” is the interplay of leading
edge Social media, Mobility, Analytics, Cloud and Internet of Everything (SMACI)
technologies, which are
empowering enterprises across critical digital dimensions including products and services,
customer experience, operations and workforce. Key enablers of digital transformation are
creating a new digital transformation web. The individual components of SMACI have
been “thriving in silos” over the past few years. Ghoshal (2015) adds that through the
convergence of SMACI, the IT landscape is now witnessing the burgeoning power of
digital transformation. This entails the integrated play of SMACI to deliver content,
commerce and collaboration to customers anytime and anywhere in a comprehensible,
personalised, contextual and cost effective manner.

Digital Transformation and Performance Management

Oxford Economics (2012) points out that technology is also reshaping the performance of
human resources. HR leaders today can leverage tools that put metrics around things that
once were difficult to measure or predict. Research shows that the transformation of HR
into a strategic business function is well under way and will continue over the next years.
The process involves deepening and broadening collaboration between HR and other
business units to improve the performance and analysis of talent management, and a
greater focus on driving business results through the strategic use of technology.
Wolf (2015) explains that performance management is actually being transformed by social
and digital technologies. Going paperless is now a standard in many organisations, but the
changes are evolving beyond that. Now managers can capture and provide feedback to
employees nearly continuously, so that they always know how they’re doing and where
they stand. This informal feedback can also be directly fed into the formal performance
management process, which can help increase completeness and accuracy and minimise
surprises.

Making digital transformation a success within HRM

Regarding the staff management, the main debatable issue is about the arrival of a new
generation, the “Z Generation”, which is hyper-connected, enterprising and no longer loyal
to the firm. Camille (2015) states that there are several future stakes that the HR
Department should consider right now . According to her, it is first important to have a
good employer brand to be attractive for the “digital natives”. They have ways to make
themselves a precise description of each organisation, and know where it is better to work
and which firm has actually adopted its processes. Other challenges consist in integrating
this new generation into the company and to make sure of the commitment of the HR
Manager to accompany all generations forming the firm.
A related problem is the risk of a generational split . The “reverse mentoring” is a
recent and useful practice to face that. Accordingly, the manager role changes, as
well as the managerial culture.

Digital transformation and Talent Management

Human Resources is unquestionably about the recruitment, development and

retention of talent. Talent is a differentiator, a business builder and, given the threat
from disruptors and the increasing pace of market change led by the digitalisation
of business, an ever increasingly essential driver in protecting from the decline of
market share or, at the most extreme, extinction.
Hunt (2014) states that transforming talent management requires digitisation, but it
also involves leveraging social and digital technologies in ways that promote and
enhance communication, collaboration, and engagement – not just between an
employee and the organisation, but between and among employees themselves
[16]. HR and talent processes and the technology that enables them will no longer
constitute their own domain. Rather, many aspects of HR and talent management
will become fully embedded into the future of work.

The Literature Gap

The arguments developed in the literature covered the three critical aspects of
digital transformation within the human resource management function. This
literature develops a perspective of digital transformation from an external point of
view.
supports the idea that governments are rapidly infusing new technologies into their
citizen engagement practices and approaches to problem solving . They are
exploring ways to leverage big data analytics to better address challenges and
improve operational efficiencies and services. At the same time, social media is
changing how citizens communicate, interact and mobilise, making it an imperative
for governments to be more responsive.

Conclusion

The digital transformation of human resource management is completely

changing the course of the process, radical changes in technology,
automation and Digitalisation have changed the traditional form of work,
the introduction of artificial intelligence in HRM processes has facilitated
problem-solving and automation of some processes. The World Economic
Forum study highlighted the competencies that by 2020 will become the
highest priority for employers, namely: the ability to solve complex tasks,
critical thinking, creativity, ability to manage people, ability to collaborate
with others, emotional intelligence, prudence and decision making, service
orientation, negotiation

References
Ardelin LUMI University of Prishtina “Hasan Prishtina”, Faculty of Economic
Honoria Samson Research Scholar Amity University Jaipur, India
Hemalatha Somu Graduate School of Business, Universiti Sains Malaysia Penang,
Malaysia
Dr Nirmal Kumar Betchoo Faculty of Business and Management Université des
Mascareignes SDM Campus, Pamplemousses
Andersson, J. (2017). Digital Transformation, Moderna affärssystem. April 2017