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

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Code DOI

 10.31359/2411‑5584‑2020‑43‑4‑26

20.11.2020