The Impact of Hrm Digitalization on Firm Performance
Question:-
write the paper on impact of HRM Digitalization of firm performance and also investigate the three-way interactions
Answer:-
The researchers in this paper have investigated the relationship between the HRM system maturity as well as the interaction of HRM digitalization on the performance of the firm along with the moderating role played by HR strategic and business involvement. The researchers of this article have highlighted that HRM system maturity as well as the interaction of HRM digitalization is positively associated with the performance of the organization. Apart from this, the business involvement and HR strategies strengthen the relationship between the performance of the organization and HRM maturity as well as the interaction of HRM digitalization. The paper highlights the importance and need for digitalization and how technology is playing an important role in improving the performance of the organization. Over time, technology has improved significantly and digitalization is trending all over the world. The digital economy has gained significant attention over the past several years (Zhou et al., 2020). The advancement in technology and information system has changed the way organization does businesses. Every organization wants to leverage the benefit of advanced technology and information system. Organizations are using advanced technology in almost all aspects of the business. But the implementation of technology in the human resource management department is currently trending. The use of information technology such as eHRM in human resource management makes the workplace as well as employee management more intelligent. eHRM allows organizations to cover all possible mechanisms as well as contents between HRM and information technology that can create values within as well as across organizations for the management and employees (Zhou et al., 2020). It is important to consider that with the passage of time, it has very tough to manage human resources and it has been equally important to manage human resources within the organization. Human resource management has been tough to manage because of the diversity and talent management. On the other hand, effective human resource management is necessary to gain competitive advantages. Using advanced information technology helps the organization to assess data and analyze to make crucial human resource decisions. There are several technologies that have been developed such as HR analytics that are widely used by the organization to collect relevant data and analyze that to create evidence-based HRM decision-making. The organization can help the organization to use descriptive, visual, as well as statistical analysis of data associated with human capital. HR process, the performance of the organization, and external economic benchmarks in order to establish the impact of the business along with enabling data-driven decision-making.
The aim of the article is to explore the effectiveness of eHRM technology and how it can be used by organizations to get a better result. This is the era of big data and hence if the organization is not effective at data analysis, the organization could not make an effective decision. The ineffective decision cannot help the organization to progress and improve the performance of the organization. It is also important to consider that there are several factors that could affect the ability of the organization to analyze the data effectively and efficiently such as lack of effective analysis or lack of technical skills to analyze the data effectively. Apart from this, a large amount of data also affects the efficiency of the organization to analyze the data effectively and efficiently. Due to such factors, eHRM may not produce the expected result (Zhou et al., 2020). Thus, the organization needs to focus on managing these factors because eHRM will not only help the organization to collect valuable as well as abundant data for human resource data analysis but it can also improve the efficiency of the organization to analyze the data with the help of digital technologies. The discussion made by the researchers clearly depicts that there is a need to implement advanced technology within the organization for effective human resource management and improving the decision-making ability of the organization. The organization should focus on HRM digitalization because, with the help of HRM digitalization, the organization can improve its performance and productivity. The effectiveness of advanced technology is determined by the task, the environment, organizational structure, and other contingencies. HRM digitalization allows the organization to collect data and information relevant to manage the above-mentioned factors and help the organization to function effectively. HRM digitalization smooth the process and procedure of the organization. The organization can also improve the human resource practices that are necessary to improve the performance of the organization. Improving human resource practice is an effective way to improve the performance of the organization. As the process and procedure of the organization improve, the organization can also address HR issues within the organization (Zhou et al., 2020). It will also boost the motivation and morale of the human resources of the organization. A high level of motivation and morale of human resources is needed for higher performance and productivity. Thus, it can be said that HRM digitalization is important and the organization should go for it.
