Industrial Revolution 4.0 and Society 5.0 Eras: From the Strategic Human Resource Management’s
Perspective
has a big data technology collected by Internet of things (IoT) [4]
changed by Artificial Intelligence (AI) [5]; [6] into something that can help people that make their life becomes better. It is important to understand the goal of Society 5.0, that is to create a human-centric society, as the resolution of both economic growth and societal problems are accomplished, so that people can enjoy a high quality of life that is fully active and comfortable [3].
The industrial revolution 4.0 delivers challenges in business world due to changing of operational business that shift from traditional into digital technology. The implementation of industrial revolution 4.0 emerge disruption in many areas of organization.
Disruption has an impact on the lack of human resource skills with the emergence of new types of work related to the use of digital technology. In the society 5.0 era, technological advancement forces change in society and organizational culture. Organizations that successfully handle various transformational changes can continue to evolve and adapt along with technological changes. [7]. The role of strategic human resource management to execute the transformation changes of the organization in order to handle disruption, make survive and reach competitive advantage.
The development of human resource management focus on the strategic roles that build organization to reach competitive advantage. To build sustainable competitive advantage, it is determined by how the company establishes a strategic orientation are principles that direct and influence company activities and build behaviors that are directed to ensure business success and performance [8]. The perspective of strategic human resource management to face the changes of industrial revolution 4.0 and society 5.0 can be seen through the use of strategic tools such as innovation, change management, talent management, and so forth.
Change management usually in relation to people factor because innovative and agile workplaces replace the stable era of pre-information bureaucracy, and change management becomes an important part of every introduction of new technology [9].
Organizational change can be driven by the implementation of information technology system [10]. The application of new technology becomes a challenge for organization to execute organizational change as a part of successful innovation. The necessary of change management to the successful implementation of new inormation technology is recognized [11]. To gain success in executing change management, it is needed the charismatic
transformational leader with excellent competencies, experience, intellectual skills, and interpersonal communication skills among employees and organizational leaders [12] to drive and lead the changes.
To reach sustainability and competitive advantage of companies depend mostly on their capability of adaptation to changing business requirements. Driving from the advancements in new digital technologies known collectively as industrial revolution 4.0, has been deeply changing dynamics of most industries.
Digitalization of business processes together with emergence of digital business models impose new digital skill requirements for workforce. Creating future workforce involves not only attracting and developing new talent needed, but also re-skilling current employees through training programs as well as re-designing work processes for reducing the skill mismatch between jobs and employees [13]. Talent management, which has been identified as one of the most important human resource functions [14], as a strategic initiative to develop talent to meet and match with new requirements for workforce.
Discussion
The adoption of industrial revolution 4.0 is considered the biggest technological revolution with computerization in production and many areas of industries. The use of new technology causes energy and cost reduction, increased quality, safety and improvement of production processes. It pursues the creation of new opportunities for industries, with the challenge of automation and digitalization of production processes, a dynamic of manufacturing and supply. Society 5.0 is moving from the manual work towards the digital machines, and the worker would become the knowledge worker. To operate the machines require far fewer workers. The problem is for society 5.0 not to absorb this human factor. It is the responsibility of human resource to provide knowledge worker with new skills to operate digital machines used as the result of innovation adoption and change management that have been implemented in organization. The perspective of strategic human resource management to help organization adapt and enter industry 4.0 as well as society 5.0, there several strategic tools of human resource to response in these issues, so that organizations can transform themselves into new era of industrial digitalization.
Response of Strategic Human Resource Management
Human resource professionals choose strategic tools of innovation in response to the coming era of industrial revolution 4.0, then followed by society 5.0. Innovation strategy will only be implemented when organization do change management. The ability of an organization to adapt to external environmental changes and be innovative is reflected in the organization's ability to deal with various changes. The attitude of society towards new technology is important and it becomes a question whether this attitude of society hinders the application of innovative technology. While innovation adoption of information technology, assumes that the adopters make full use of the innovation [15]. According to [16], innovation in the workplace is influenced by three factors, such as environmental problems, barriers, and leadership skills. Barrier mindset can be a challenge of innovation that requires organizational environment and leadership behavior that support creating organizational culture. Leadership must support and encourage innovation in order to appreciate employee innovation [16].
Change management refers to the methods and manners in which a company describes and implements change within both its internal and external processes. Organizations cannot avoid changes, unless to take a risk difficulty to survive in the turbulent and uncertainty conditions influenced by external environment. The successful implementation of business operations and the concept of information technology is more determined by change management has been proven [11]. Human resource professionals conduct change management and must ensure that the leader of organization who lead change management must have the capacity of transformational leadership. There are three different types of change management, namely, developmental, transitional, and transformational. It is important to recognize this as the different kinds of change require different strategies and plans to gain engagement, reduce resistance, and ease acceptance. And the transformational leader must understand and choose the appropriate initiative strategy to the need of organization to change.
Transformation leadership is needed in turbulent and uncertain environment. The important leadership in change management need a new system and new approach. Besides the capability to lead the management changes to adapt to new digital technology, leadership and behavior of the leader give significant impact on the awareness of employees’ behavior. Transformational leadership is a way to influence employees’ motivation and behavior
during change [17], which has been shown to affect employees’
attitudes towards and readiness to change positively [18] and to reduce their resistance about change [19]. Transformational leaders through their charismatic nature and ability to create a positive vision of change that is worth interest and inspire their followers. A few studies have found that transformational leadership influences employee behavior during change by improving performance [20]
and increasing behavioral support of a change [21].
The importance of talent management practices is that talented employees have the strategic capabilities that can increase the productivity, efficiency and competitive advantage of organizations in various industries [22]. However, talent development should be positioned as a strategic level, so as to the identification of strategic competencies that characterize ‘who the talented employees are’ should be link and match with requirements of new capabilities of workforce derived from industry 4.0. This talent development also need to be aligned with corporate strategy and all strategic business processes. In the era of industrial revolution of 4.0 and society 5.0, organization needs to focus on preparing talent with high capabilities to meet the requirements of business and industries.
Refer to [23] concept of talent, that is: “Talent = competence [knowledge, skills and values required for today’s’ and tomorrows’
job; right skills, right place, right job, right time] commitment [willing to do the job] contribution [finding meaning and purpose in their job]”
(p. 60).
This means that human resource professionals to develop talent with new competencies not only for today’ need but also for tomorrow’ job. Besides, talent management practices enable organization to utilize, develop, and manage talented employees as well as retaining and rewarding. In Industry 4.0 era, employees need to have a collection of ICT skills. And more important skills for successful execution of hard-skills of digital technology, employees also should have soft-skills such as collaboration, communication, teamwork, adaptability and flexibility, so that high performance can be achieved. And this is very important in gaining competitive advantage of the organization.
Conclusion
The Industrial Revolution 4.0 and Society 5.0 eras deliver the biggest impact to business and organizations in todays’ business competition. From the perspective of strategic human resource
management, organizations should response to these eras with strategic tools such as innovation, change management, transformational leadership, and talent management to the emergence of new digitalization technology in all aspect of business.
The roles of human resource professionals to overcome these environmental changes with strategic choices and initiatives so that organization can adapt to the new digital technology and ready with the new competencies of potential talent in which it can link and match with the requirements of new workforce. When all of these can be executed successfully, it is not possible for organization to gain sustainable competitive advantage. Indeed, in terms of organization, the goals of society 5.0 in giving balance between economic development and workforce problems solving that arise as a result of industry 4.0 can be achieved.
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