Advantages & Disadvantages of Digital Human Resource Management

This essay examines the impact of digital transformation on Human Resource Management (HRM), highlighting both the advantages and disadvantages of integrating digital technologies into HR practices. It discusses how digital platforms enhance recruitment, improve communication, and increase overall efficiency through online portals. Advantages such as payroll integration, efficient employee file management, streamlined benefits administration, improved data accuracy, and enhanced communication systems are explored. However, the essay also addresses disadvantages including security and privacy concerns, high setup and installation costs, the risk of data breaches, difficulties in data analysis, and potential loss of subjective assessment. It emphasizes the importance of adopting robust security measures like encryption and firewalls to mitigate data breach risks and ensuring the use of authentic servers during the hiring process. The essay concludes by underscoring the need for HR professionals to carefully weigh the benefits and risks associated with digital HRM to make informed decisions about technology adoption.

Human Resource Management in the digital
era: advantages and disadvantages

HUMAN RESOURCE MANAGEMENT 1
Human Resource Management in the digital era: advantages and disadvantages
The digital transformation plays a main character in the field of human resource
management and advanced digital technologies provide a platform for recruiting.
Today, most the organizations use digital era and processes for hiring purpose and it
changed the way of communication1. In this modern generation, human resources
management team use online requirements website for communication purpose that
reduces their efforts and increase overall efficiency. The main purpose of this essay is to
describe the advantages and disadvantages of human resource management in the
digital era.
It is observed that in the last few years the use of digital technologies in HRM has
increased and most of the companies hire students and experts with the help of the
online portal system. The info and communication technology shows a significant part
in the evaluation of human resource management and it is a very crucial tool in the
development of HRM2. It is used by the small, medium and large organization to meet
the requirements of their stakeholders and HR technologies are used by the numbers of
stakeholders, for example, employees, manager, and HR team.
There are many advantages of human resource management in the digital era such as
payroll integration, employee files, benefits administration, the accuracy of information,
data analysis process, and also improve the communication system. The integrating
payroll is the best process to ensure that the workers have access to payroll their
documents and with the help of this process, they can hold their forms and direct
deposit data or information. It also provides an online portal by which experts can
retrieve pay stubs and distribute jobs in different sectors3. A digital system provides a
platform to store and track the all human resource files, documents, evaluation and
training. The manager of an organization can access their files and able to upload
evaluation documents and employees can track their missing files with the help of ICT
process. By using this kind of processes the HRM teams can communicate with
1 Lee, S.M., Olson, D.L. and Trim, S., 2012. Co-innovation: cover genomics, collaboration, and co-
creation for organizational values. Management Decision, 50(5), pp.817-831.
2 Slovensky, R. and Ross, W.H., 2012. Should human resource managers use social media to screen
job applicants? Managerial and legal issues in the USA. info, 14(1), pp.55-69.
3 Anderson, V., 2013. Research methods in human resource management: investigating a business
issue. Kogan Page Publishers.

HUMAN RESOURCE MANAGEMENT 2
employees and students very easily and hire members for their organization in very less
time. With the help of digital era, the employers are able to integrate benefits
administration into the human resource platforms that mean the HR team can access
employee’s benefits, for example, retirement plans and health programmes. The
employees and HR team can easily identify the information or data of any person
regarding job without the requirement of any consultancy4. The ICT technology also
allows very fast analysis of the human resource issues and it has the ability to control
and monitor the data and information of any student.
There are few disadvantages of the digital era in the sector of human resource
management, for example, security and privacy issues, cost of setup, installation and
training, data breach, the difficulty of analysis, and loss of subjectively. Privacy is a very
common problem with any communication technology and employees can lose their
private details. When any person communicates with other by using ICT technology that
hackers can easily detect their personal information. One of the common drawbacks of
the digital era is that their implementation cost and HR management team pay
thousands of dollars to install and configure the digital systems and consulting. Human
resource management can reduce these costs by adopting the remote host system but it
requires a lot of time to communicate with individuals. In most of the digital technology
the analysis of data is a very crucial problem and due to which the human resources
management are not able to analyse and control the information of employees. It is
observed that the problem of the data breach is associated with the many digital
technologies and HRM uses wireless networks to communicate with employees5. Data
breach means loss of personal information and hackers use malicious software to detect
the detail of employees and manager. It also increases the human errors at the time of
information input and data entry related issues6. Therefore, the use of ICT is very
difficult in the field of HRM because the organization can lose their personal data or
information and implementation and design cost is very high.
4 Robinson, L., Cotten, S.R., Ono, H., Quan-Haase, A., Mesch, G., Chen, W., Schulz, J., Hale, T.M.
and Stern, M.J., 2015. Digital inequalities and why they matter. Information, communication &
society, 18(5), pp.569-582.
5 Arkorful, V. and Abaidoo, N., 2015. The role of e-learning, advantages and disadvantages of its
adoption in higher education. International Journal of Instructional Technology and Distance
Learning, 12(1), pp.29-42.
6 Salehi, M., Mirzaei, H., Aghaei, M. and Abyari, M., 2012. The dissimilarity of E-marketing VS
traditional marketing. International journal of academic research in business and social sciences, 2(1),
pp.814-825.

HUMAN RESOURCE MANAGEMENT 3
This essay is completely based on the role of digital technology in the sector of human
resource management and their strength and weakness. With the help of this essay,
readers can gather their knowledge in relation to the practices of human resource
management in the digital era. Employees should adopt security plans to avoid the
problem of a data breach like encryption and firewall software. The human resource
management ensures that they use only authentic servers and websites during the
hiring process because most of the applications are developed by malware software by
which they can lose their data.

HUMAN RESOURCE MANAGEMENT 4
Bibliography
Anderson, V., 2013. Research methods in human resource management: investigating a
business issue. Kogan Page Publishers.
Arkorful, V. and Abaidoo, N., 2015. The role of e-learning, advantages and disadvantages
of its adoption in higher education. International Journal of Instructional Technology and
Distance Learning, 12(1), pp.29-42.
Lee, S.M., Olson, D.L. and Trimi, S., 2012. Co-innovation: convergenomics, collaboration,
and co-creation for organizational values. Management Decision, 50(5), pp.817-831.
Robinson, L., Cotten, S.R., Ono, H., Quan-Haase, A., Mesch, G., Chen, W., Schulz, J., Hale,
T.M. and Stern, M.J., 2015. Digital inequalities and why they matter. Information,
communication & society, 18(5), pp.569-582.
Salehi, M., Mirzaei, H., Aghaei, M. and Abyari, M., 2012. The dissimilarity of E-marketing
VS traditional marketing. International journal of academic research in business and
social sciences, 2(1), pp.814-825.
Slovensky, R. and Ross, W.H., 2012. Should human resource managers use social media
to screen job applicants? Managerial and legal issues in the USA. info, 14(1), pp.55-69.