Digital Maturity of HR in SMEs: Challenges and Opportunities

This report provides an analysis of the digital maturity of Human Resources (HR) within Small and Medium Enterprises (SMEs). It examines the core argument that digital transformation and the implementation of people analytics are significantly impacting HR practices. The report explores how SMEs are adapting to digital processes, and how people analytics is used to understand employee patterns and trends. The analysis highlights the evolving nature of technological advancements and their role in developing a tech-culture within SMEs. It emphasizes the importance of understanding employee needs through people analytics, the impact of digital transformation on opportunities for SMEs, and the role of digital HR in improving employee work processes. The report references several articles and studies to support its findings, concluding that digital human resources are crucial for the effective management and development of employees within modern organizations.

Running head: DIGITAL MATURITY OF HR IN SMES
DIGITAL MATURITY OF HR IN SMES
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1DIGITAL MATURITY OF HR IN SMES
Event Articles - DIGITAL MATURITY OF HR IN SMES
http://journals.euser.org/files/articles/ejes_v6_i1_20/Thomas.pdf
Human resource management that is also termed as personnel management consists of different
activities performed by an organization to confirm the utilization of the employees for
achievement of goals and objectives. The HRM functions of an organization are focused on
people side of the management (Bratton & Gold, 2017).
The key issue that has been discussed in the article is related to big data analytics or the human
resource analytics that mainly refers to the techniques like predictive analytics, data mining and
real-time data collection (Thomas, 2020). “Digital transformation of small and medium-sized
enterprises (SMEs) - such as Li, Su, Zhang and Mao (2017) - is a relatively unexplored area in
which the authors identify a research gap. At the same time - as Chen, Jaw and Wu (2016)
describe - digital transformation offers a multitude of opportunities, especially for SMEs, to
increase their success. Li et al. (2017) describe that the digital transformation itself, as well as its
causes, success factors and consequences, have already been well researched.”
The sector of HR or human resource management on which the article focused is mainly based
on the people analytics or human resource analytics. The use of people analytics related to the
ways by which huge volumes of data can be used for the purpose of understanding the patterns
and trends (Thomas, 2020). The digital transformation that has taken place in the SMEs due to
implementation of digital processes is a major issue discussed in the article.
The core argument that has been developed in the article is related to the implementation of
people analytics process that is used for analyzing data of employees in various organizations.

2DIGITAL MATURITY OF HR IN SMES
The situation that has been formed in the organizations after digital transformation is also
analyzed in the article in detail (Thomas, 2020).
The article is significant for the purpose of understanding the importance that people analytics
has gained for the implementation in the modern organizations. Issues faced by entrepreneurs
based on the understanding they have regarding digital transformation in the firms is considered
to be a major purpose of developing the article (Thomas, 2020).
The article is based on the evolving nature of the technological advancements for the
development of tech-culture in the small and medium enterprises. The analysis is able to play a
key part in understanding the usage of people analytics for proper understanding of the demands
and needs of the employees (Thomas, 2020).
Personal opinion - I think that the article can be significant for understanding the impact that
digital transformation has on the opportunities that have been gained by the SMEs in different
parts of the world. I have also been able to realize that the digital human resource management
and transformation has been a significant part of the growth of SMEs.
The analysis can be concluded by stating that digital human resources can play a main part in
improving the work process of employees and understanding their needs as well. The proper
human resource management process is supported in an effective manner by use of people
analytics in different organizations.

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References
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Collings, D.G., Wood, G.T., & Szamosi, L.T. (2018). Human resource management: A critical
approach. In Human resource management (pp. 1-23). Routledge.
Thomas, G. (2020). Digital Maturity of HR in SMEs. European Journal of Economics and
Business Studies, 6(1), 56-62.