This chapter delves into the role of digital HR in developing economies, focusing on the intersection of technology, human resources, and economic development. It highlights the opportunities and challenges of digitalization, such as HR leveraging digital tools to enhance workforce efficiency and foster innovation. The chapter also discusses the implications of Industry 5.0, emphasizing the integration of AI, automation, and IoT in reshaping HR practices. The potential benefits of digital HR include improved talent management and increased productivity, but also address challenges like infrastructure constraints and skill gaps. The chapter forecasts trends in Digital HR specific to developing economies, aligning with Industry 5.0 principles. The chapter explores the effects of digitalization on workforce dynamics, organizational structures, and the economy, addressing challenges like digital literacy, data privacy, and socio-economic disparities. It highlights the potential of digital HR in bridging skill gaps, promoting inclusive growth, and stimulating innovation.
TopIntroduction
In the contemporary global landscape, the rapid pace of technological advancement has ushered in an era of unprecedented change, often referred to as Industry 5.0. As developed economies seamlessly integrate digital technologies into their industrial processes, the focus now shifts towards understanding the implications and opportunities for developing economies in the context of digital transformation. This introduction provides a foundational overview of the burgeoning paradigm of Industry 5.0, emphasizing its potential impact on developing economies. It sets the stage for an in-depth exploration of the forecasting trends, nuanced impacts, and inherent challenges associated with digital transformation in these dynamic contexts (Sánchez-Bayón & Aznar, 2020).
The term Industry 5.0 encapsulates the fusion of cyber-physical systems, the Internet of Things (IoT), and artificial intelligence (AI) in industrial processes. Building upon the foundations of Industry 4.0, this new phase seeks to harmonize human-centric approaches with advanced technologies, creating a symbiotic relationship between humans and machines. In the developed world, this transformation has led to increased efficiency, innovation, and economic growth. However, as we embark on this journey, it becomes imperative to examine how developing economies, often characterized by diverse socio-economic landscapes and unique challenges, can harness the power of digital transformation for sustainable development (Strohmeier, 2020a).
Developing economies, despite facing initial barriers, are positioned to leverage digital transformation to leapfrog traditional developmental stages. The integration of digital technologies holds the promise of addressing longstanding challenges in areas such as healthcare, education, and infrastructure. Yet, it is crucial to acknowledge the multifaceted nature of this transition. The impact of Industry 5.0 extends beyond the industrial sector, permeating various facets of society, from governance and education to healthcare and beyond. Thus, understanding the trends, impacts, and challenges within the specific context of developing economies becomes paramount for policymakers, businesses, and the global community at large (Costan et al., 2021).
Digital technologies can significantly drive inclusive growth by providing access to information, services, and markets, creating a more equitable environment. However, challenges like digital literacy, infrastructural limitations, and socio-economic disparities need to be addressed to ensure seamless integration. Addressing these obstacles can unlock the full potential of Industry 5.0 and guide developing economies towards sustainable development, thereby promoting a more equitable playing field (Thite, 2022a).
This study explores the complex nature of digital transformation in developing economies, forecasting trends, examining impacts on sectors, and addressing challenges to fully utilize Industry 5.0's potential. It aims to illuminate the future, inspire dialogue, and foster a future where digital transformation is a powerful force for positive change in these economies (Rane, 2023). Digital Human Resources (HR) is a crucial aspect of Industry 5.0, integrating technology, workforce management, and organizational efficiency. It plays a significant role in sustainable growth in developing economies, where diverse labor markets and unique socio-economic challenges exist. Digitalization in HR practices can foster inclusive and equitable development, highlighting the importance of HR in addressing these challenges and promoting sustainable development.
Digital HR is a crucial tool for developing economies, enabling scalable solutions for talent acquisition, management, and development. By leveraging digital platforms, these economies can tap into a global talent pool, fostering a more diverse and skilled workforce. This aligns with Industry 5.0 principles, which emphasize the integration of technology for efficiency and creating a globally connected workforce (Karmaker et al., 2023). Industry 5.0 is a shift in work, requiring digital HR to equip the workforce with necessary skills. Digital HR platforms facilitate training and development programs, bridging skills gaps and empowering employees to navigate Industry 5.0's complexities. In developing economies, digital HR promotes lifelong learning, upskilling, and adaptability, especially in areas where educational disparities hinder workforce readiness due to educational disparities.