How digital business influences the human resource management

Nowadays, with the rapid and continuous development of technology and big data, digital business has penetrated into different work fields and it also brings more convenience when people work. Furthermore, the value brought by digital business makes enterprise management more efficient, especially in the human resource management area which is an important part in enterprises. The changing labor markets field led to the human resource management must adopt digital technology to meet the enormous business requirements.

The focus of human resource management is on the scientific allocation, training and management of human resources, which plays an important role in ensuring the sustainable development of enterprises (Li, 2019).By the application of digital technology, it is possible to optimize the shortcomings of traditional human resource management and effectively regulate the entire system. It is to ensure the fairness and justice of human resource management..

The technology of big data

The technology of big data brings benefits to human resource management. Firstly, it makes the data of human resource planning more scientific and accuracy. As for traditional human resource planning, managers common use trend analysis method, ratio analysis method and regression analysis method, which could use hundreds of data to analysis (Hang, 2019). However, when applying big data technology, managers could base on the long-term employee turnover trends and macro development data analysis of industry standard to make plans. It reduces the complexity of data collection and effectively guarantees the quality of work.

Secondly, the technology of big data also creates an effective way for enterprises to recruit employees. Today, most enterprises recruit online by using the cloud computing technology to analysis the talents who are the current stage of the industry needs and set the threshold. Then, using the technology of big data to filter out applicants who not meet the mandatory criteria. This make the talent recruitment more targeted and could save the time and cost. For example, in Europe, NHS and organizations of health fields using the NHS digital platform named NHS Jobs to recruit. This platform saving around £10000000 for government, however, it costs only £2000000 per year. Now, it becomes the biggest recruitment platform in Europe and almost 500 organizations to join it (Thompson, 2015).

The technology of artificial intelligence (AI)

In the background of digital business, it is necessary for enterprises to apply artificial intelligence (AI). IBM is one of the first human resource departments to apply AI. Tom Stachura, who is the vice president of IBM, he thought that “AI is an accelerator – it allows us the ability to ingest a variety of data and provide context to a decision maker or employee or business leader. It allows us to deliver the right intelligence in the moment and achieve personalization at scale.” (Guenole & Feinzig, 2018).

As for the performance assessment part, which is the basic part in human resource management, some non-quantitative indicators of assessment are mostly scored by reviewers traditionally. So, the objectivity is inefficient. However, when apply the AI technology, the assessment could analysis employees performance according to a large number of cases scientifically and reasonably. This could improve the objective authenticity of performance assessment and employees performance can be comprehensively analyzed. Therefore, the motivation and loyalty of employees to the company could be improved.

About the future

In the future, with the development of digital technology in human resource management area, which lead to the human resource field needs more technical talents. In order to suit this environment, HR must equip with professional ability, comprehensive practical ability and digital ability. Soft skills such as creativity, adaptability, collaboration and time management enable HR to navigate new information and make effective decisions.They also need to have a higher sensitivity of the changing industry so that they could training of other staves timely. This may indicate that potential of HR is important rather than experience (Hogg, 2019). So, it may be more difficult in people’s career path. They should have all aspects of social development, and so do I.

Although AI is developed rapidly in human resource area, it could not completely instead of HR in the future. HR is a position that contains emotion to communicate with people. There are many factors that need to be taken into account and it is still take a long time to digitize these factors. AI could only solve some basic work, but emotional communication is difficult to measure.  However, it is undeniable that the basic work of HR will be replaced by digital human resource management system in the future. People may under the great competitive pressure in human resource area since the enterprises are lack of high-tech talents, but most people just stay at the basic level. So we must improve ourselves ability to suit the digital environment in the future.

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References

Hang, S. (2019). Human resources change brought by the digital economy. Business News

Hogg, P. (2019). Artificial intelligence: HR friend or foe?. Strategic HR Review.

Guenole, N., & Feinzig, S. (2018). The Business Case for AI in HR. With Insights and Tips on Getting Started. Armonk: IBM Smarter Workforce Institute, IBM Corporation.[Google Scholar].

Li, P.(2019). Thoughts about the promotion effect of information technology on human resource management. China Management Informationization

Thompson, M. (2015). NHS jobs: Using digital platforms to transform recruitment across the english & welsh national health service. University of Cambridge, Judge Business School.

How digital business influences the human resource management》有4个想法

  1. It’s a really intersting blog, which inspire me a lot. I remeber one years ago, when i was looking for an internship at a company. After submitting our resumes ,the company’s database screened us befor we could interview HR. The development of digital technology in human resource management quiet does save a lot of labor.

  2. Hi Manping, I really like how you relate artificial intelligence (AI) with human resource management (HRM). Apart from the cloud analysing and AI technology you mentioned, I think social media also plays a massive role in how the HRM has been transformed by the digital economy. Recent studies found out that more than one-third of employers hire from social media, and that the trend has been continuously growing. Social media platforms such as LinkedIn, Facebook and even instagram allow users to set up their portfolios including pictures, personal information, education /work experiences, as well as their own posts. Other users’ comments on their pages are also visible, thus allowing employers to know more about oneself from a relatively objective perspective. Apart from these platforms, Skype, for instance, is also an app that benefits HRM. Me myself has benefited from Skype as I did an online interview with my previous employer who was in another continent, and successfully attained my internship. People are no longer confined by geographical distance when looking for a job or looking for a talent.

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