Human Resource Management & Digital Transformation

Rolling Plans Pvt. Ltd. Oct 11, 2021 8676 0

Human Resources are all the individuals who make up an organization,  or the economy's workforce. On the other hand, human capital is a term that refers to the knowledge and abilities that individuals possess. Manpower, labor, staff, companions, or simply: people can be used to describe HR too; however, nowadays HR mostly refers to Human Resource Management

What is HRM? 

Human Resources was initially used to define the individuals who work for the company in aggregate in the early 1900s, and then more commonly in the 1960s. However, human resources management or Human Resources (HR) is also the department of a company that is in charge of identifying, screening, hiring, and training job candidates, as well as managing employee benefit programs.


Today,  Human Resources plays a critical role in assisting businesses in dealing with a changing corporate world and a greater need for qualified personnel.


Functions of HR

  • People management and utilization.

  • Performance evaluation, benefits, and rewards linked to competencies and productivity.

  • Conducting upskilling as well as other necessary training programs. 

  • Increasing motivation, willingness, and excellence in the organization.

  • Inventing and planning work tools to boost excellency and efficiency

  • Recruitment, onboarding, and appraisal.

  • Managing the adoption and integration of technology via enhanced personnel, training, and employee communication.


The importance of employee resources in any business or organization cannot be ignored. People who make up the workforce are also one of the prime assets of the company. The phrase "Human Resources" was established in the 1960s, when the importance of labor relations became more widely recognized, and concepts such as motivation, organizational behavior, and selection evaluations began to take shape in a variety of work contexts.


Common activities conducted by the HR

  • Job recruitment, selection, and promotion management

  • Creating and managing employee benefit and wellness programs

  • Creating, disseminating, and enforcing personnel policies

  • Employee career growth and job training are encouraged.

  • Providing new hires with orientation programs

  • Providing direction on disciplinary actions

  • Serving as the primary point of contact for workplace injuries or incidents


HRM and Digital transformation


Human resource management (HRM) in simple words is the practice of recruiting, hiring, deploying, and managing people in a company.


The human resources department of a corporation or organization is generally in charge of developing, implementing, and supervising rules that regulate workers and the firm's interaction with its employees. The implementation of digital technology into all operations of a business, radically changing how you operate and offer value to consumers and employees, is known as digital transformation. It's also a cultural shift that causes businesses to grow, adapt, fail and learn constantly. 


Digital transformation is essential for all organizations, from small to large. That message rings loud and clear from almost every speech, panel discussion, article, or study about how firms may stay competitive and relevant as the world gets more digital.


Human resource management (HRM) is the management of personnel with a focus on those people as assets to the company. In this sense, personnel is sometimes referred to as human capital. The objective, like with other corporate assets, is to make the most use of personnel while minimizing risk and maximizing return on investment (ROI).


Human capital management (HCM) is a word used more commonly in current HR technology than HRM. The term HCM has become widely used by big and medium businesses, as well as other organizations that use software to perform various HR activities.


Human resource management is in charge of all issues concerning people in a company. This includes everyone in the chain of command from managers, general staff, and laborers. Compensation, recruiting, and hiring, performance management, organizational growth, safety, wellness, benefits, employee engagement, communication, policy administration, and training are all examples. For a digital transformation in HR to occur, the whole HR processes in the organization should be automated and digital.


Every product or service is the result of human thought, labor, and man-hours (working hours). No product or service can be created without the assistance of a human. A human person is the most basic resource for creating or producing anything. Every business wishes to have talented and competent employees who will help it to be the best it can be. However, through the use of artificial intelligence, VR (Virtual Reality) in training, cloud-based HCM tools, and chatbots, the process can be digital and efficient. 


HRM is concerned with the first of the five Ms of Management, which are men, money, machines, materials, and methods. It is considered that "men" is the most difficult of the five Ms to handle. "Every guy is distinct from the other," and they are completely different from the other Ms in that males can influence the other Ms. The other Ms, on the other hand, are either dead or abstract and as such, cannot think and determine what is best for them. The use of artificial intelligence, digital assessment and training tools, etc has however made the process much easier.


Even during the pandemic, since physical presence was not possible, the HR of companies have used digital means and tools to communicate, supervise and organize the company. Meetings were held online, remote work is more common now than ever, attendance and everyday tasks details and records are kept online too. 

Importance of HR 


Human resource management is not just a field or a department that is an option for a company; instead, it can make or break a company. Contrary to traditional belief, there are numerous benefits of good HRM management due to which HR has become one of the most sought-after careers today. Few importance of HR in an organization include:


Developing an engaged workforce:

Without HR, employees do not have a clear picture of their role and purpose in the company. One of the main tasks carried in the HRM is strategic coaching, professional development, and mentorships that help every employee grow and upskill while increasing employee engagement.


Improving teamwork and communication:

HR's "soft skills" have a significant impact on a company. Staff may utilize conflict resolution training from HR to help them handle problems, and managers can use HR training to help them communicate with their employees more successfully.


Assisting employees in developing a stronger commitment to corporate goals: 

HR managers acquire a clear view of the company's current goals and ideal future by serving as strategic planning partners. Once they have that insight, they can explain the strategic plan to employees and assist them to develop a better grasp of and dedication to the company's goals.


Increasing employee morale: 

HR specialists are at the heart of corporate culture, handling benefits such as gym memberships and mental health services. When HR implements social activities, such as a corporate sports team or a weekly excursion, it brings employees together as individuals and boosts morale.


Effectively navigating conflict:

HR managers provide a toolkit for dealing with conflict to both supervisors and workers. They may lead seminars for the entire workforce or resolve issues between individual members of the team.


Making team members feel appreciated and supported: 

HR assists employees at many levels, from giving mentors to new employees to providing training to seasoned staff. HR professionals have a unique chance to get to know each employee as an individual and ensure that everyone feels noticed and appreciated since they are in charge of ensuring that all workers have everything they need to function successfully.




In 2021, we live in a digital world. Especially, due to the coronavirus pandemic and lockdowns, many organizations have adopted digital methods for operational activities and many HR trends had to be digital as well. This is the age of digital transformation with a rising in the competency of technology and HR activities have been digitized too. 

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Head/Editor : Pravash Rai
Team Leader : Roshan Kalauni
Writers : Lachana Shakya & Shikshya Subedi
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