Challenges to the organization’s adoption of a digital HR system

Modern businesses are under pressure to move towards automation and digitalization due to the state of the global economy and the need to be better prepared for market problems. Organisations are required to drastically alter the features and expand the function of HR management procedures as a result of the rapid advancement of technology, the rate of change, and the forced transformation of business models and work designs. HR executives and professionals must update their set of skills and competences as well as develop and possess new ones if they are to be able to drive future organisational performance.  Human capital, intellectual capital, and expertise are crucial elements of a digital transformation strategy that can assist establish a competitive advantage. 

Renewal and further development of organisational culture will be a top concern for human resource management given the influence of digital transformation on organisational processes and the possibility of organisations to adopt more flexible working arrangements. (Nivlouei, 2014) It requires the coordination of HRM strategy with organisational strategy and goals as well as the development of procedures and standards that support employees operating in changing working conditions and customer requirements. Cultural transformation as a result of digital transformation is a peculiar challenge for modern HRM application. (Selmer et al., 2004). The current organisational culture needs to identify solutions for the transition to a hybrid work paradigm that benefits from both remote and office work. Employee social dynamics will alter as a result of new working conditions like decreased face-to-face interaction and growing workforce dispersion. The advent of remote work has significantly altered how we work, and certain individuals may need additional training to maintain the same level of productivity. The HRM function can also implement a performance management system based on results accomplished, where employee performance is solely dependent on their performance and not on time spent at work. This is possible as a result of the effects of digital transformation. By identifying and redefining essential roles and creating contingency plans using scenario-based planning instead of traditional HR planning, the HRM function in the organisation is able to generate good succession planning strategies as a result of the use of new technologies.  Learning and development are an essential component of modern HRM practise in order for it to carry out its strategic purpose. It specifically refers to enhancing the knowledge and expertise of its staff members who possess transferrable and specialised abilities, giving them a competitive advantage and increasing their adaptability to change.

Although digital transformation has many positive perspectives it is very challenging to achieve the goals.

 

References

AM, E.N. et al. (2020) Implementation of Human Resource Management in the adaptation period for new habits, International Journal of Educational Administration, Management, and Leadership. Har Press Indonesia. Available at: https://www.neliti.com/publications/410504/implementation-of-human-resource-management-in-the-adaptation-period-for-new-hab (Accessed: April 18, 2023).

Bajer, J. (2017) Digital transformation needs the human touch, Strategic HR Review. Emerald Publishing Limited. Available at: https://www.emerald.com/insight/content/doi/10.1108/SHR-02-2017-0011/full/html (Accessed: April 18, 2023).