Abstract
Human resource management (HRM) in organizations is rapidly being transformed by information technologies. The COVID-19 pandemic has intensified the pace of digitalization of HR processes, which has become particularly important in the context of the digital transformation of human resource activities. Those organizations that take advantage of digital HRM technologies are better positioned than those that pay less attention to them. Additionally, organizations have had to adapt to new work models such as hybrid or remote work. This chapter describes how digitization is reshaping human resources by introducing digital HR transformation in different activities, comparing digital recruitment to traditional recruitment, focusing on the role of applicant tracking systems in recruitment and selection, and examining digital trends and work models. Finally, several practical implications will be discussed.
TopThe Industry 5.0 And Hr Practices
Artificial intelligence, the Internet of Things, robots, 3D printing, cloud computing, and other advanced technologies are at the heart of Industry 4.0 (Adel, 2022). Industry 5.0, however, refers to the upcoming generation of efficient and intelligent machines designed on the basis of the previous generation of technology.
According to the European Union, Industry 5.0 places less emphasis on technology, as it aims to reach a resolution by assuming that progress comes from collaboration between humans and machines (European Commission, 2020). The purpose is to use advanced technologies, such as big data analytics, to help individuals work faster, improve performance and efficiency (Adel, 2022).
Work organization is rapidly changing as a result of digitalization, which is hastening long-term trends that began about 30 years ago, increasing flexibility in both timing (e.g., flextime) and space (e.g., remote work) (Roquelaure, 2021). The use of a digital platform facilitates the delivery of online services by an individual over a network; allows for the provision of on-demand physical services, such as commercial services; and enables workers to access a virtual labor market. In the age of big data, massive volumes of commercial, personal, and geographic data are being combined by internet platforms in ways that are directly exploitable.
Key Terms in this Chapter
Remote Work: A work model where employees work from a location different to the organizations’ premises.
Automation: The use of processes which perform tasks or activities and replace humans with machines, such as robots and computers, with the intention of increasing efficiency and reducing variability.
Digital HR Transformation: It is the process by which operational and manual human resources processes are automated based on data and information technology.
Hybrid Work: A work model that allows employees to combine work in-office and remotely.
Application Tracking System: It is a software that helps organizations manage the recruitment and selection process, including job postings, collecting data, screening applications, and choosing the most suitable candidates.
Artificial Intelligence: The use of machines, such as computer systems, to simulate human intelligence processes, behaviors, and decisions.
HR: Human resources is one of the functions of the organization which is responsible for managing the employment relationship, recruitment and selection, onboarding, training and development, performance management, and compensation.
Recruitment: An HR function that focuses on attracting potential employees to fill open positions.
Human Resources Development: The part of HR that oversees training and employee development.