International Journal of Business and Economy (IJBEC) eISSN: 2682-8359 | Vol. 4 No. 3 [September 2022]
Journal website: http://myjms.mohe.gov.my/index.php/ijbec
THE REFLECTION OF HUMAN RESEARCH MANAGEMENT DIGITALIZATION ON BUSINESS
VALUES IN ACCESSING NEW OPPORTUNITIES
Angelia Anggia Permata Norman1*
1 Doctoral Management Study, Universitas Terbuka, Bandung, INDONESIA
*Corresponding author: [email protected]
Article Information:
Article history:
Received date : 25 September 2022 Revised date : 27 September 2022 Accepted date : 27 September 2022 Published date : 29 September 2022
To cite this document:
Norman, A. A. P. (2022).THE REFLECTION OF HUMAN RESEARCH MANAGEMENT DIGITALIZATION ON BUSINESS VALUES IN ACCESSING NEW OPPORTUNITIES. International Journal of Business and Economy, 4(3), 412-423.
Abstract: The aim of this research is to reflected the value that might be added by human resources management by adopting digital transformation. The situation in current era is the, digitalization and the adoption of digital tools accelerates economic growth, increases productivity and improves the efficiency of business processes. Besides, Human resources management also remain very important function in every business in this digital era. Business organizations would not longer capable to effectively recruit and maintain employees, and enhance the organization, and they would not be in a position to keep a healthy, acceptable workplace culture and environment. Good work environtment could lead the business to find new opportunity that allow businesses to improve their performance and increase probability for business sustainability. The study extracted 285 articles from early August 2022 untill the end of August 2022. This study reviewed selected papers, covered 7 relevant articles, and removed duplicates. Finally, the findings show that relations of corporate value is proving their present implementation of digitalization and its and importance for the future sustainability of the business.
The communication meaningfulness, and cooperation dominate in terms of importance for new opportunity in business sustainability. And introducing technological innovations aimed at employees to a much greater extent is become important.
Keywords: Human Resource Management, Business Values, Digitalization.
1. Introduction
The development of industry is an integrated process between the man and the machine using its own complexity and pandemic has shown that Human Resource is and must be digital in order to hold up with the changing media landscape, because candidates now frequently search for appropriate jobs online, where they expect interesting possibilities to be posted and companies to have a professional presence. (Jesse, 2021). There is various amount to digitalization such as raised efficiency, improve productivity, lower operational costs, improved cunsumer experience, enhanced employee morale, higher agility, improved communication, extended transparency, and increase benefit (Malak, 2022)
The feeling of exceptionality is evoked by way of interest and focus on the individual and expectations of the employee/customer. Employees will be more motivated and committed to the organization when their important needs are met and when these important needs are not met, their morale suffers and this weakens their motivation in the long run (Mallow, 2022).
Regarding to Gisma Business School (2019) Human Resource management helps bridge the gap between employees' performance and the organisation's strategic objectives. Moreover, an environmently friendly Human Resource management team can supply the corporation an edge over their competition. Recruitment: One of the major responsibilities of a Human resource manager is to recruit personnel.
Your company values are the lifeblood of your business. They help you empower your employees and build a sense of purpose in the workplace. (Heinilla, 2022). And Accessing new markets allows a company to broaden its reach and increases its potential to sell products and services to more customers. This increase in sales can also boost the bottom line of the business (Lorette, 2022). Then a business valuation helps establish a baseline value which enables you to create more informed financial goals, business strategies and marketing objectives. Annual business valuations allow you to understand your company's potential for growth and innovation. (Sun, 2019)
2. Literature Review
Today, the main subject of discussions on changes in the world is the question of the adopting skills and competences of the workers for performing modern job tasks (Beier, 2020).
Employment in sectors, the work of which is monotonous and routine, will face a challenge for survival, digitalization and autonomous technologies, during the time of automation, with their present job positions (Dreachslin, 2017). Regarding to Kergroach et.al (2017), changes in production systems in the digital era are a cause of changes in customer behavior (external and internal customer) and consequence.
Another consequence of the improvement of clever technologies is the assumption that the human aspect will be absolutely changed by more tightly closed and fantastic structures with ideal communication as part of production, such as precise positioning and visual quality control, and heavy lifting. It is difficult to say if the industry 4.0 sector will be a pleasant environment for qualified workers, but the need for greater specialization, adaptability, flexibility, a potentially smaller range of knowledge and skills will be very different; however, in general, the requirements from employees will increase in the form of responsibility in decision making (Dragicevich, 2019)
Figure 1: Impact of Digitalization on Human Resource Management (ECB Digitalisation Survey and ECB Calculations, 2018)
Figure 1 shown that digitalisation increasing the productivity, more efficient production processes and driven by the ease of sharing knowledge (see Chart). Base on on ECB Economic Bulletin (2018) Virtually all user regarded the easier sharing of knowledge (especially within the company) as being an important channel through which digitalisation raises productivity, with around half considering that aspect to be very important. The role that digitalisation has in making the production process more efficient via automation is almost equally as important.
Many users emphasised that the increase in the amount of data and information that they collected, both inside and outside of the organisation, was helping them to satisfy their customers’ needs. The usual impact on productivity was perceived to be overwhelmingly positive, with a more superior effect typically being reported in service sectors, especially in business-to-business segments.
At the organizational level, the mentioned effects are manifested in the form of pressure to constantly focus on competitiveness, re-evaluate the size and implement elements of flexibility and structures of the organization (Verma, 2020). The implementation of Human Resource 4.0 encounters in organizations, not only creates issues with the selection of a correct set of new technological tools, but also with overcoming the expectations of management in several generations of employees and the existing organizational culture (Silvathanu, 2018).
Figure 2: Impact of Digitalization on Company Performance (ECB Digitalisation Survey and ECB Calculations, 2018)
Figure 2, shows that digitalization having a small negative impact on employment, while emphasising the importance of retraining and upskilling. Based on ECB Economic Bulletin (2018) One thirt of Human Resource Management expected digitalization to reduce employment in their company over the next three years, while one fifth around forecasting the increases in employment. Digitalisation was regarded as increasing the ratio of high-skilled to low-skilled workers, with emphasis on retraining and the reassignment of workers to new tasks supported by digital technologies.
The manifestations of changes in fundamental values include changes in the role of a person in production systems, which leads to a change in competences, opportunity and, subsequently, the required competence of the employees (Silvathanu, 2018). Modern employers expect technological (knowledge of the business, technological skills, programming, process orientation), methodological (analytical skills, creativity, entrepreneurship, focus on efficiency), social (communication skills, ability to work in a team, ability to lead) as well as personality (flexibility, motivation, tolerance) competences (Muller, 2019).
The human resources managements react for tendencies of digitalization in two stages.
Digitalization as the transformation of analogue and biometric data to digital, and the implementation of systems, such as platforms of digital interaction, big data analytics, networking fast analytics, predictive analytics and security. A possible issue is also the fact that, even though Human Resource might have good ideas on how to develop analytics, its relatively peripheral position within the organizational hierarchy can prevent it from being able to mobilize support or to advance or implement the results of the research.
Human resources management specialists structure corporate culture and declare values which are the pillars of company approach to support the implementation stage towards current employees, and also to make a clear picture about expected organizational behavior, as well as the possibility of the implementation of the applicant’s aspirations and programs for the organization’s career management. This means that the sources of competitive advantages of human resource management systems in organizations are becoming commonly available. This was, until recently, exclusive and confidential information on internal company systems. At
the same time, the employees are the most authentic, purposeful and effective method of distributing the content of corporate culture and completing strategic opportunities.
2.1 Problem Statement
Likewise, the problem identification:
That Human resource management reflection on business value has highlighted the need for Digitalization in Accessing New Opportunities to keep the economy sustain.
Therefore, the research questions are:
1. What values do the companies consider as crucial in terms of business sustainability opportunity in the 4.0 era?
2. Is digitalization related to the transformation of key values for Human Resource management companies in the industrial 4.0 era?
Thus, our objectives are to:
1. Discover the values that companies consider as crucial in terms of business sustainability opportunity in the 4.0 era
2. Discover digitalization relation to the transformation of key values for Human Resource management companies in the industrial 4.0 era
Figure 3: Research Framework, (Martinez Caro et. al., 2020 with Modification)
The research benefit:
1. Practically for company decision makers to considering technological support for employees and customers that can be reflected in corporate behavior.
2. Theoritically research could prove of values and tools and processes for their implementation do change.
3. Method 3.1 Materials
This research conducted literature review and covered 7 relevant journals by removing the duplicates that extracted from 285 journals since early August 2022 untill the end of August 2022 which relates The Reflection of Human Research Management Digitalization on Business Values in Accessing New Opportunities.
3.1.1 Site
The journals that will be reviewed were gathered from various sources that indexed by Scopus as a reputable resource.
3.1.2 Procedures
Method that used to gathered the journals are through PoP applications, and being extracted by the researcher until the journal in the next section being founded.
4. Results and Discussion
Table 1: Literature Review (Various Resource, 2022)
Title Author Year Location Research Result
The Implication of Digital Organisational Culture on Firm Performance
Mahir Pradana, Anita Silvianita, Syarifuddin Syarifuddin and Renaldi Renaldi
2022 Indonesia
digital organisational culture can become an essential factor in improving digital strategy and performance.
However, business digitalization no longer virtually affects digital organisational values.
Big data and HR analytics in the digital era
Dahlbom, Pauli;
Siikanen, Noora;
Sajasalo, Pasi;
Järvenpää, Marko
2019 Finlandia
both technical and human obstacles, operating with very basic HR processes and traditional information systems and poor data quality, a need for increased cooperation with data analysts and HR professionals in provision and understanding the HR-related data for business-related decision making.
The Impact of Cloud Computing
Technology on Organizational Performance;
Financial, Customer, Operational (Case Study: Zarin Iran Porcelain Industries Co.)
Sonia Mirrazavi and P.h.D Gholamreza Hashemzadeh Khoorasgani
2016 Iran
cloud computing technology has a wonderful positive and good significant impact that influence the organizational performance. Also, cloud computing has a good positive and significant size affect on the dimensions of
organizational performance- financial, consument and operational.
Innovative use of the Internet in established small firms: the impact of knowledge
management and organisational learning in accessing new opportunities
Lynn M Martin and
Harry Matlay 2003 England
human resource management base could allow such corporation to
“reinvent” themselves, primarily by the effectively accessing purpose and embedding new knowledge. It emerged that organizational supports and culture facilitates the wider access and application of new knowledge through organizational gaining mechanisms of knowledge.
Global HR Roles and Factors Influencing Their Development:
Evidence from Emerging Indian IT Services
Multinationals
MOHAN THITE, PAWAN BUDHWAR, AND ADRIAN WILKINSON
2014 India
Five key HR roles have been identified, they are the strategic business partner, guardian of culture, builder of global workforce and capabilities, champion of processes, and facilitator of employee development. The analysis aldditionally highlights that the Human Resource Management function in Indian IT service MNCs faces various challenges in consolidating the early gains good point of internationalization, such as lack of decentralized selection and decision making, growing in an international mind-set, localization of the workforce, and creating an international leadership pipeline.
Reflection of Digitalization on Business Values: The Results of Examining Values of People Management in a Digital Age
Jana Blštáková, Zuzana Joniaková, Nadežda Jankelová, Katarína Stachová and Zdenko Stacho 2,
2020 Slovakia
the universal nature of corporate value orientation, irrespective of the size, business focus or performance of the people management system.
Meaningfulness, cooperation and communication dominate in terms of importance for business sustainability.
The results of the study in Slovakia support the opinions of published foreign research, which emphasize the importance of introducing technological innovations improvement aimed at workers to a greater extent.
Strategy, Culture, Human Resource, IT Capability, Digital Transformation and Firm Performance–
Evidence from Vietnamese Enterprises
Nguyen Van Thuy 2021 Vietnam
there are four factors that influence Digital Transformation: IT Capability, Digital Business Strategy, Human resource capability, Organizational Culture. Among these four factors, the research findings also confirm that digital transformation has a direct impact on innovation and firm performance
The literature review was performed to find the level of the implementation. From the table review, 5 from 7 journals can show that the most important values that companies perceive as crucial for their success and competitiveness in the upcoming industry 4.0 era include meaningfulness of work itself, cooperation and purposeful communication.
Then 2 from 7 journals shown that companies still show low degree of corporate readiness in value equipping and also in the area of employee engagement, ownership, enthusiasm and joy of work. However, it is these attributes that are the requirements of Human Resource Management 4.0, heavy on foresight flexibility, competence, and the challenge of continuous change, can effectively develop a culture of engagement.
Industry 4.0 is accompanied by a transformation of processes related to data, information and knowledge (Pauli, 2019), And the companies’ reactions to changes in industry 4.0 conditions, was the implementation rate of technological innovations aimed at the internal and the external customer (Mirrazavi et.al, 2016). They consider tools enabling fast and predictive analytics as important for business sustainability; however not implemented to a sufficient extent (the difference between the required and actual rate of use is the highest among all tools). The company also consider it important to digitize analogue data, use a platform for digital interactions and networking and work with big data. The companies feel much better. (Thite et.al, 2014)
The research was the transformation of the value orientation and the value profiling of companies in terms of business success opportunities in the 4.0 era fall under a single common cluster (Martin and Matlay, 2003). Further relation between the manifestations of digitalization through the implementation of technological innovations aimed at customers and workers and the transformation of values, which the companies consider important for their success in the industry 4.0 era might be related to the transformation of key values for human resource management in companies in the industry 4.0 era. (Blstakova, 2020). Then regarding Pradana (2020) , the value preferences are not tied to the level of digitalization of the corporate processes and, therefore, this does not interfere with the value profiling of the company.
These review findings show reserves in the preparedness of the companies for the new industry 4.0 era, when, on the one hand, the companies clearly recognize the necessity to implement the presented values in human resource management, while, on the other hand, they are not satisfied with their present rate of the implementation of the major value categories.
5. Conclusion
Digitalization enables the creation of a virtual space, which is not limited anymore by space and time. We are gradually leaving manual systems of the real world, with applicable technology, and moving to virtual worlds built on programs and, the patterns of which are in the hands of software.
The characteristic features of the 4.0 world of work, which are the accompanying value sustain and open opportunity of the fourth industrial revolution and the consequences of fundamental changes of production systems, are real-time operation, effectiveness and strict functionality, the integration of the virtual and the real world, complexity, insecurity and dynamics.
Based on the above mentioned knowledge on changes in the world of work relevant for human resource management, it is possible to identify the main tendencies, that in industry 4.0 situations, will be a source of changes and new key in human resource management, which are digitalization, diversity. and value redefinition.
6. Acknowledgement
Praise be to Allah SWT, who gives HIS kindness and blessing for the author to finish this research entitled “The Reflection of Human Research Management Digitalization on Business Values in Accessing New Opportunities”. I want to say my thanks and gratitude to all people gives support and guide during the process. Then, I want to say thankyou verymuch to:
1. My beloved husband for being by my side, coming to me when I had no inspiration and caring to me during the completion of the research.
2. My lovely parent who always give me support and loves for my entire life.
3. All of KLIC staff that help me during registration and complete this research.
4. And all people that without disrespect could not be mentioned one by one for their support on this research.
Finally, I hope that Allah SWT gives the blessing to all people who already support the author completing this research. The author hopr that this research could bring usefulness to all people who read it.
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