A Human Resources Management Report

This report discusses the impact of digitalization and artificial intelligence on human resource management practices. It explores the adoption of digitalization in organizations, key learnings from research articles, positive and negative impacts of applying digitalization in the workplace, and key challenges for HR leaders. Recommendations for HR leaders are also provided.

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A HUMAN RESOURCES MANAGEMENT REPORT
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4/12/2019

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Contents
1. Introduction............................................................................................................................................2
2. Adoption for organization......................................................................................................................2
3. The key learning from articles...............................................................................................................3
4. Key impacts of applying to learn in the workplace...............................................................................4
4.1 Positive impacts...............................................................................................................................4
4.2 Negative impacts..............................................................................................................................4
5. Key challenges for HR leaders..............................................................................................................5
5. Recommendations..................................................................................................................................5
6. Conclusion.............................................................................................................................................7
References..................................................................................................................................................8

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1. Introduction
The environment is changing with a rapid rate, which is making a great transformation in human
resource management and procedures. For instance, the digitalization has not only affected the
marketing aspect of a business but has also affected human resource management practices to a greater
extent. The key change drivers in human resource management would be considered for the discussion
in report further (Kim et al., 2016). For critically analysing the change drivers and their implication,
various research articles would be discussed and key challenges that human resource leaders would
face in the organization would also be considered in report.
The artificial intelligence and digitalization are the technological advancement that has worked
positively but also adversely affected organizational performance, which would be discuss in the
further section of the report (Song et al., 2017).

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2. Adoption for organization
Digitalization has changed the scenario of human resource and procedures completely. The ways
through which digitalization has been embraced and adopts in the organization are as follows
 Change in candidate journey – The recruitment process has been completely changing, with the
adoption of digitalization, recruiting the global talent has become possible through online
platforms. Searching for the candidates online and shortlisting the required candidates has
become easy with the use of technology. The HR needs have been transformed and the focus
has shifted from courting applicants to driving respondent decisions.
 Bringing better insight into their employees – For HR leaders to know what employees think
and act in real time, needed to have surveys conducted for the employee’s feedback. With
adoption to digitalization employee engagement has been considered which reflect that the
leaders do not have to base their analysis and HRM practices over a survey they in fact can
start listing to what the employees are saying already (Zacher & Rosing, 2015).
 Interconnected work – One of the problem HR leaders used to face was a decision was to pass
on through a hierarchal structure that is the chain of the company was a vertical direction. With
the adoption of digitalization, cross-functional management is being considered and HR leaders
are more focused over developing connected managers.
 Performance management – The performance management process, tended to be slower before
this era. The efforts of the leader were on improving the performance through an increase in a
number of feedback frequency. With the adoption of digitalization, the evaluation method by
HR leaders has made a difference in the evaluation method. Dynamic goal setting process has
been considered by the leaders to make the process faster and more effective (cebgloba, 2019).
3. The key learning from articles
There have been various articles researched over the digitalization and artificial intelligence impact
human resource. For instance, an article of Deloitte, “The changing role of people management in the
digital age” discuss digital transformation is no longer place attention as it comes from tech division
and in the assembly room of leaders through industries, geographies, and sectors. The present digital
age was considered a stepping-stone in the development of an ecosphere allowed by the exponential
usage of technology in the organization. The article focused on the organizational implication of

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digitalization, for instance, leaders have focused over outcomes, and organization had become a
decision maker and becoming flattered learner. Flexibility and mobility were critical for the remaining
employees to be relevant in the digital world. Moreover, it had been observed that human resource
plays the vital role in developing organizational leaders and equipping the employees with essential
competencies and characteristics of leadership, included tolerance, leadership at all levels, mobility,
decision making, collaboration, communication and, feedback (2.deloitte, 2019).
Another article by PWC, “The HR challenges in business transformation in Luxembourg,” included
that the over thirty companies have taken part in the HR survey from the Luxembourg economy. From
the survey, various HR challenges have been identified regarding the management of the talents in the
organization. Some of these challenges included talent management, employee engagement, and
employee development. It was concluded in the article that the HR functions has been understood in
different ways. Even after the significant changes since years and introduction to digitalization and
digital transformation, the HR function positioning as a strategic partner for the organization remained
to be one of the major challenges. Performance management has been perceived as challenging for
most of the organizations, among which, the most challenging was found to be training managers for
ensuring fair treatment in the process. It was observed through the article that the companies were still
unable to understand the skills management and its implementation. Moreover, it was observed that
since the digital strategy was found to be enhancing at a greater rate the business concerns and HR
function found to be under better opportunity in order to reposition and accelerate the transformation
allowed companies to develop innovating recruiting procedure and strategy, develop strong employer
brand and digital strategy. Development of new model and tools of collaboration among the
organization; digitalize all HR process, and also HR management has modernized (pwc.lu, 2019).
An article by Deloitte university press, “Global Human Capital Trends 2016 The new organization:
Different by design,” including discussing digital HR. For business leaders and human resource
leaders, digital revolution stances two vital challenges that are First, HR can support corporate leaders
and personnel move to a digital outlook, a digital approach of managing, establishing, and leading
transformation. Second, the HR leader has the chance to transform the whole employee experience by
transmuting Human resource processes, arrangements, and the HR business via innovative digital
stages, applications, and methods of supplying HR services. Moreover the major learning to be
implement to the organization, can initiate the digital transformation through embrace design thinking,
leveraging agile method of integrating employees, technology, business leaders across the Process,

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share experiences and digital strategies across the company, and imagining employee experience and
human resource in real time (2.deloitte, 2019).
4. Key impacts of applying to learn in the workplace
4.1 Positive impacts
 Efficiency and effectiveness – The human resource process has become more effective through
digital transformation and has increased the speed of the process like performance management,
or recruitment process (Gabriel, 2016).
 Change employee experience – The employee’s skills has been increasing to a greater extent,
and has completely changed the journey of an employee in the organization in a positive aspect
(Frost, 2018).
4.2 Negative impacts
 Change management – The change has brought various issues as well, like a decrease in the
need for human resource in various organizations due to the increase in artificial intelligence
and automation (Loewenberger et al., 2013).
 Physical disconnection – The increase in the use of technology can be harmful, in the sense that
the physical connection has been reduced and only the technological connection is left in the
organization due to digital transformation, which could also cause anxiety and depression. From
one another Deloitte articles, the negative impact of technology in HRM has observed Increases
in anxiety and depression due to lack of social well-being and alteration in completely social
structure (Smith, 2018).
5. Key challenges for HR leaders
 The requirement of digital competence – The recruitment has completely changed with the
digitalized era. However, It has been observed that due to digitalization the requirement for the
digital competency has been increased to a higher extent. this has identified the problem for
people searching for the job traditionally and is having various skills and competencies but
unable to be recruited (Folger, 2017).
 Work-life balance – The digitalization has allowed the employees to enjoy work from home
availability in most of the companies which turned out to be challenging for the employees

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regarding work-life balance. Keeping a balance in work life and personal life has been
misbalanced and mixed up due to greater use of technology.
 Leveraging on digital technologies – The dependency of the employees and employers over
digital technologies has come up with new challenges like the availability of updated
technology. It has been observed that technology has been changing with a rapid pace, which
makes the technology degradation quick as well, challenging for the technical team in an
organization. Moreover, the risk of technological breakdown has been increased due to which
the whole work would be stopped or would not be able to complete (Poole & Folger, 2017).
5. Recommendations
 Use of artificial intelligence to encourage healthier behaviour - Artificial intelligence can
support better arbitrate the interaction of HR with technology, accomplishment monotonous
“spadework,” to allow one to emphasis on higher-level responsibilities. In precise, AI can be
bound to help to manage digital work backgrounds. For instance, some email structures
nowadays use Artificial intelligence to sort emails into classifications. Making crucial emails
easier to trace and merely assertive primary emails to an employer’s mobile. Google has also
controlled with behavioural economist “Dan Ariely” to form AI into its schedule application
that can mechanically list “appointments” for performance jobs that are significant but incline
to be congested out by concrete jobs that are vital in the small term.
 Technological updating – The company must have a regular check over the technological
advancement to use the updated technology in order to avoid any disturbance and degraded
technological use.
 Diversity – Through recruitment all over the world can become easy through digital
transformation. The company must go for the cross-cultural workforce to increase the
competency across the company and enhance the productivity of the company (Pandey, 2015).

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6. Conclusion
From the report, it can be concluded that artificial intelligence and digitalization are the technological
advancement that has worked positively but also adversely in organizational performance.
Digitalization has altered the scenario of human resource and processes wholly. The ways through
which digitalization has been embraced and adopts in the organization were change in candidate
journey, bringing better insight into their employees, interconnected work, and performance
management.
The major learning’s from the three articles studied were the present digital age was considered a
stepping-stone in the development of an ecosphere allowed by the exponential usage of technology in
the organization. It was observed that even after the significant changes since years and introduction to
digitalization and digital transformation, the HR function positioning as a strategic partner for the
organization remained to be one of the major challenges. The key challenges identified for the HR
leaders for digitalization were a requirement of digital competence, work-life balance, and leveraging
on digital technologies

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References
2.deloitte, 2019. dme_hc_changing_role_of_people_management_in_the_digital_era. [Online]
Available at: https://www2.deloitte.com/content/dam/Deloitte/xe/Documents/human-capital/
dme_hc_changing_role_of_people_management_in_the_digital_era.pdf.
2.deloitte, 2019. gx-dup-global-human-capital-trends. [Online] Available at:
https://www2.deloitte.com/content/dam/Deloitte/global/Documents/HumanCapital/gx-dup-global-
human-capital-trends-2016.pdf.
cebgloba, 2019. reimaginehr-5-ways-hr-can-take-the-lead-in-digitalization. [Online] Available at:
https://www.cebglobal.com/talentdaily/reimaginehr-5-ways-hr-can-take-the-lead-in-digitalization/.
Folger, J., 2017. Working through conflict: Strategies for relationships, groups, and organizations.
New York: Routledge.
Frost, S., 2018. The Importance of Training & Development in the Workplace. [Online] Available at:
https://smallbusiness.chron.com/importance-training-development-workplace-10321.html [Accessed
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Poole, M.S. & Folger, J., 2017. Working through conflict: Strategies for relationships, groups, and
organizations. London: Routledge.

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pwc.lu, 2019. pwc-people-organisation-hr-survey. [Online] Available at:
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Smith, R., 2018. Crime in the digital age: Controlling telecommunications and cyberspace illegalities.
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