HR 4.0: THE REVOLUTION IN THE SPHERE OF HUMAN RESOURCES

Author

, professor, Kharkiv, Pushinska, 77

In heading

Economic theory;

Signed print

20.11.2020

Issues number

2020 - № 4 (43)

Page

26-45

Type of articles

Scientific article

Code UDK

331.101.262 (477)

ISSN print

2411-5584

Abstract

Problem setting: under the Fourth Industrial Revolution, there are important changes in the sphere of human resources: the HR 4.0 becomes one of the factors of business development. New technologies of data exchange considerably enhance the efficiency of making decisions on personnel management and creating the digital workplaces. Moreover, HR analytics, HR consulting, and machine learning (ML) are evolving. HR departments focus their activity on strategic issues regarding the development of a business organization.
Recent research and publication analysis: global consulting companies and international research institutions actively study the issue of influence of the 4IR on human resources management and personnel strategies. Experts confirm the theoretical and practical significance of contributions of Deloitte Touche Tohmatsu Limited (Deloitte), PricewaterhouseCoopers International Limited (PwC), and Bain & Company. Examinations of scientists of the World Economic Forum (WEF) are equally important. In Ukraine, a number of authors such as H.V. Bei & H.V. Sereda, V.M. Zhukovska, H.S. Lopushniak & R.V. Mylianyk, et al. have dedicated their articles to these issues.
Paper objective: to analyse the main changes in personnel management under the HR 4.0.
Paper main body: the digital economy activates drawing up and implementing the new solutions in the sphere of personnel management, amends personnel strategies of organizations, and modifies the activity of their HR departments. Firstly, a key competency within the digital economy implies big data analytics, abilities to process a large amount of information in order to optimize business processes, and enhancing the management efficiency. Nowadays, the demand for professionals having the digital dexterity is the greatest. In general, the EU acknowledges the «digital» competency as one of eight key competencies for a full life and activities. Secondly, managers are implementing the conception of «digital workplace», which ensures: to improve the labour mobility and flexibility of works; to decrease the staff turnover; to successfully compete for talented employees; to effectively enhance the qualification of personnel; to optimize costs and enhance servicing; to revamp a general management system.
Thirdly, the professional structure of employees is extremely changing. Digital enterprises require digital experts, primarily those addressing problems of artificial intelligence and Agile technologies, and implement a position of chief digital officer.
Fourthly, technologies and tools for selecting and assessing the personnel effectiveness are being modified: there are the automatization of processes for searching contenders for vacant seats, applying the algorithms of machine learning and complex diagnostics of competencies, psychological peculiarities, values of a person, etc.
Fifthly, there will be the transition to the formation of flexible teams of employees. Meanwhile, under the digital economy, teams are volatile and their content rapidly changes. Personnel, especially in the sphere of information and communications technologies, work virtually and simultaneously in several groups, several cities, and even countries.
Conclusion of the research: owners of business organizations and managers should permanently take into account changes in the sphere of human resources. At the same time, scientists should research these issues, generalising the practice and revealing the new HR 4.0 tendencies.
Short Abstract for an article
Abstract. The author analyses the influence of the Fourth Industrial Revolution on the sphere of human resources (HR 4.0). From the standpoint of system analysis, the author proposes to consider the digital transformation of the economy: firstly, as fundamental changes in technologies, forms, and methods of human activities; secondly, as strategic changes leading to the organizational transformation, revision of strategies, models, operations, and products. In the sphere of human resources management, under the HR 4.0, the author indicates the following changes: changes of requirements for key competencies of personnel; undertaking the conceptions of digital workplaces; the extreme change in the professional structure of employees; modifying the activities of HR departments, technologies, and tools for selecting and assessing the personnel effectiveness; the transition to flexible team building.

Keywords

Fourth Industrial Revolution (4IR), Industry 4.0, HR 4.0, digital economy, digital enterprise, digital workplace, human resources, personnel management, flexible teams.

Reviewer

External reviewer

Article in PDF

26-45

Bibliography

1. KPMG (2020). Pohliad kerivnykiv biznesu v Ukraini 2020. Spetsvypusk: COVID-19 [The view of business leaders in Ukraine 2020. Special issue: COVID-19]. Retrieved from https://home. kpmg/content/dam/kpmg/ua/pdf/2020/10/CEO-Outlook_2020_ Ukraine. pdf [in Ukrainian].
2. The future of Human Resources. A glimpse into the future. A scenario approach. Monitor Deloitte. (n. d.). Retrieved September 25, 2020, from https://www2. deloitte.com/content/dam/Deloitte/de/Documents/strategy/Future-of Human-Resources-2030‑Deloitte-Glimpse-Paper. PDF. 3. PwC. SHest’ shagov navstrechu cifrovoj transformacii. (n. d.). [PwC. Six Steps Towards Digital Transformation]. Retrieved September 25, 2020, from https://theoryandpractice.ru/posts/17840‑pwc-shest-shagov-navstrechu-tsifrovoy-transformatsii [in Russian].
4. Gnamm, J., Schwarz, G., & Oschlies, M. (2019, January 10). Human Resources 4.0: Digitalization sweeping aside analog HR management. Retrieved from https://www.bain.com/insights/personal-4.0/.
5. Ukrainian Institute of the Future (2018). Ukraina 2030E – kraina z rozvynutoiu tsyfrovoiu ekonomikoiu [Ukraine 2030E – a country with a developed digital economy]. Retrieved from https://strategy.uifuture.org/kraina-z rozvinutoyu-cifrovoyu-ekonomikoyu.html [in Ukrainian].
6. Poliakova, A. (2020). Navychky maibutnoho: yak ne zalyshytysia bez roboty cherez piat rokiv [Skills of the future: how not to lose your job in five years]. Retrieved from https://www.epravda.com.ua/publications/2020/10/27/666642/?fbclid=IwAR1uhmU Op2CbWHZQ0hgr2zu8lrfCElQAk-tirUIPnDlKrSKM22ZhQ6jNz6E [in Ukrainian].
7. Volini, E., Schwartz, J., & Denny, B. (2020). Superteams. Putting AI in the group. Retrieved from https://www2.deloitte.com/global/en/insights/focus/human-capitaltrends/2020/human-ai-collaboration. html.
8. WEF. In collaboration with Saudi Aramco, Unilever, and Willis Towers Watson. (2019, December). HR4.0: Shaping People Strategies in the Fourth Industrial Revolution. Retrieved from https://www.ravinjesuthasan.com/wp-content/uploads/2020/04/WEF_ NES_Whitepaper_HR4.0. pdf.
9. Weekes, S. (2020, March 10). Bring on HR 4.0: confronting the Fourth Industrial Revolution. Retrieved from https://www.people-doc.co.uk/blog/bring-on-hr-4.0‑confronting-the-fourth-industrial revolution.
10. Ravin Jesuthasan on Automation, HR 4.0 and the Future of Work (by Ankita Sharma). (2020, July 07). Retrieved from https://humancapitalonline.com/interviews/details/1184/automation-hr-and-the-future-of-work.
11. HR4.0: Human Capital as an Asset. (n. d.). Retrieved September 25, 2020, from https://www.weforum.org/projects/hr4-0‑human-capital-as-an-asset.
12. Bei, H. V., & Sereda, H. V. (2019). Transformatsiia HR-tekhnolohii pid vplyvom tsyfrovizatsii biznes-protsesiv [Transformation of HR-technologies under the influence of digitalization of business processes]. Ekonomika i orhanizatsiia upravlinnia – Economics and organization of management, 2 (34), 93–101 [in Ukrainian].
13. Zhukovska, V. M. (2017). Tsyfrovi tekhnolohii v upravlinni personalom: sutnist, tendentsii, rozvytok [Digital technologies in personnel management: essence, tendencies, development]. Naukovyi visnyk Mizhnarodnoho humanitarnoho universytetu – Scientific Bulletin of the International Humanities University. Retrieved from http://www.vestnik-econom.mgu.od.ua/journal/2017/27‑2‑2017/5. pdf [in Ukrainian].
14. Lopushniak, H. S., & Mylianyk, R. V. (2019). Vplyv tsyfrovykh tekhnolohii na formuvannia kompetentsii upravlinskoho personalu [The influence of digital technologies on the formation of competencies of management staff]. Investytsii: praktyka ta dosvid – Investments: practice and experience, 24, 10–16 [in Ukrainian].
15. Bukht, R., & Heeks, R. (2018, September). Defining, Conceptualising and Measuring the Digital Economy. International Organisations Research Journal, 13 (2), 143–172. DOI: 10.17323/1996‑7845‑2018‑02‑07.
16. What is Digital Economy? (n. d.). Retrieved September 25, 2020, from https:// www.igiglobal.com/dictionary/institutional-entrepreneurship-trust-and-regulatorycapture-in-the-digital economy/7605.
17. Lyaskovskaya, E. A., & Kozlov, V. V. (2018). Upravlenie personalom v cifrovoj ekonomike [Human resource management in the digital economy]. Vestnik YUUrGU. Seriya «Ekonomika i menedzhment» – Bulletin of SUSU. Series «Economics and Management», 12 (3), 108–116 [in Russian].
18. Bubbles pop, downturns stop. (n. d.). Retrieved September 25, 2020, from https:// www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/bubbles-pop-downturns-stop.
19. Verkhovodov, A. Tsyfrova transformatsiia ta potreby biznesu [Digital transformation and business needs] (n. d.). Retrieved September 25, 2020, from https://medium.com/@untone/%D1%86%D0%B8%D1%84%D1%80%D0%BE%D0%B2%D0%B0%D1%82%D1%80%D0%B0%D0%BD%D1%81%D1%84%D0%BE%D1%80%D0%BC%D0%B0%D1%86%D1%96%D1%8F%D1%82%D0%B0%D0%BF%D0%BE%D1%82%D1%80%D0%B5%D0%B1%D0%B8%D0%B1%D1%96%D0%B7%D0%BD%D0%B5%D1%81%D1%83-5ba902f5037d [in Ukrainian].
20. Soft skills: chto ischut rabotodateli v novom sotrudnike v 2019 godu? (2019). [Soft skills: what are employers looking for in a new employee in 2019?]. Retrieved from https://premiummanagement.com/blog/soft-skills-2019 [in Russian].
21. Mazur Ye. Investytsiia v maibutnie: yak opanuvaty vysokooplachuvanu profesiiu u Big Data-industrii. (n. d.). [Investing in the future: how to master a high-paying profession in the Big Data industry]. Retrieved September 25, 2020, from https://mind.ua/publications/20217693investiciya-v-majbutne-yak-opanuvati-visokooplachuvanuprofesiyu-u-big-data-industriyi [in Ukrainian].
22. Zagrebelnaya, N. S., & Bostoganashvili, E. R. (2019). Upravlenie chelovecheskimi resursami v tsifrovoy ekonomike [Human resource management in the digital economy]. Ekonomika: vchera, segodnya, zavtra – Economy: yesterday, today, tomorrow, 9 (1А), 374–384 [in Russian].
23. Miller, P. (2012). The Digital Workplace: How Technology Is Liberating Work. Dog Ear Publishing.
24. Rouse, M. (n. d.). Digital workplace. Retrieved September 25, 2020, from https://searchcontentmanagement.techtarget.com/definition/digital-workplace.
25. Marshall, S. (2017, April 27).Why You Can’t Buy a Digital Workplace. Retrieved fromhttps://www.cmswire.com/digital-workplace/why-you-cant-buy-a-digital-workplace/.
26. Hall, B. (2018, November 12). What is a digital workplace? Retrieved from https://www.interact intranet.com/blog/what-is-a-digital-workplace/.
27. Understanding the Digital Workplace. (n. d.). Retrieved September 25, 2020, from https://www.elcom.com.au/resources/blog/digital-workplace-framework.
28. Instrumentyi otsenki PIF (Potential in focus). (n. d.). [PIF (Potential in focus) assessment tools]. Retrieved September 25, 2020, from http://www.sti-partners.ru/ru/assessment-tool-pif-potential-in-focus [in Russian].
29. Vlasiuk, V. (2020). Ne podobaietsia? Zvaliui! Abo chomu karantyn oholyv vrazlyvist gig-ekonomiky [Do not like? Drop it! Or why quarantine has exposed the vulnerability of the gig economy]. Retrieved from https://www.epravda.com.ua/columns/ 2020/04/3/658901/ [in Ukrainian].

Code DOI

10.31359/2411‑5584‑2020‑43‑4‑26

20.11.2020