The Role of Technology in Human Capital Management

Advanced technologies can be applied in various ways to improve human capital

management practices at an organization. They can make the communication of information

easier, reducing mistakes and ensuring that initiatives take place smoothly. Long-distance

communication tools, in particular, have become indispensable to most companies. They

have proven particularly valuable in the current circumstances, enabling people to work from

home without significantly disrupting the flow of operations. Such a result would not be

possible before the emergence of the tools necessary, such as the Internet and

videoconferencing software. More modern developments, such as augmented and virtual

reality, can also be leveraged to improve human resource management in novel ways. The

two items mentioned can help relay visual information to people in a more accessible

manner, enabling them to experience an image that is easier to comprehend and closer to

reality than many other modes of presentation.

From the viewpoint of the resource-based theory, technology, as applied to human

resource management, is a resource that is valuable and difficult to imitate, though it is

neither rare nor nonsubstitutable. When used correctly, it can generate substantial advantages

for the company that employs it. However, most such technologies are typically based on a

shared third-party foundation accessible to most competitors. With that said, technologies

typically require experience and knowledge to maximize benefits, which makes their

immediate adoption challenging. Moreover, the advantages they provide may often be found

elsewhere, particularly for less integrated technologies, such as the aforementioned VR and

AR applications. As such, companies should seek out new technologies and incorporate them

into their operations at all levels while also learning from others’ examples to obtain

substantial advantages.