Digitalization of Human Resources – the transformation journey into automated and data-driven service organization
Ketolainen, Niina (2018)
Ketolainen, Niina
Haaga-Helia ammattikorkeakoulu
2018
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2018060212108
https://urn.fi/URN:NBN:fi:amk-2018060212108
Tiivistelmä
The nature of work and workforce are changing because of the ongoing era of digitalization. Digitalization will inevitably have an impact also on Human Resources (HR) as costeffective, efficient and high-quality digital HR services are becoming an expected value. Out of the topical global HR Trends, HR organizations need to find those that are relevant focus areas for the company in question. Hence, HR organizations are challenged to renew their operating model and their service delivery but also challenged to explore the opportunities of HR technology to reclaim its place as the key for the company in achieving sustainable competitive advantage. Thus, HR needs to improve its alignment with IT and with the business to be successful in the digital transformation journey. Digital HR Service Delivery and HR Service Management could be means to achieve the next level of professionalism and service-oriented mind-set also in HR. By means of digital HR Service Delivery, HR would be able to become automated and data-driven.
The conceptual framework for this study consisted of HR, Human Resources Management (HRM), HR processes, HR policies and HR operating model, and how those are linked to HR Service Delivery and HR Service Management. Furthermore, the concept of HR Maturity and HR Service Maturity was studied in order to have understanding about the elements affecting the HR digital transformation journey. Moreover, some HR trends were studied in order to obtain understanding of the relevant topics HR is suggested to be facing in the future.
This research was conducted as a case and somewhat an action research. The study was mainly deductive where the data was collected by using interviews and existing theory was applied to the study. The research sample for this study was 10, consisting of companies of different sizes, operating in different industries. All interviewees were HR Executives or HR Managers giving the research credibility. The theory was collected during fall 2017/early spring 2018 and the interviews for this study were held in February/March 2018.
As an outcome, it was found that the overall stage of digitalization of HR but also the level of HR service maturity was somewhat low. It seemed that HR organizations were more focused with the HR trend areas that aim to support business strategically and structured digital HR Service Delivery and HR Service Management was not seen that important. However, when looking at the crucial elements and lessons learned when entering digitalization of HR, they support the value proposition of structured HR Service Delivery and HR Service Management. It can be debated whether HR could learn from IT – the pioneer of service management – during their digitalization journey. This study could spin-off various future researches such as design and implementation of integrated HR Service Delivery and HR Service Management into case organization.
The conceptual framework for this study consisted of HR, Human Resources Management (HRM), HR processes, HR policies and HR operating model, and how those are linked to HR Service Delivery and HR Service Management. Furthermore, the concept of HR Maturity and HR Service Maturity was studied in order to have understanding about the elements affecting the HR digital transformation journey. Moreover, some HR trends were studied in order to obtain understanding of the relevant topics HR is suggested to be facing in the future.
This research was conducted as a case and somewhat an action research. The study was mainly deductive where the data was collected by using interviews and existing theory was applied to the study. The research sample for this study was 10, consisting of companies of different sizes, operating in different industries. All interviewees were HR Executives or HR Managers giving the research credibility. The theory was collected during fall 2017/early spring 2018 and the interviews for this study were held in February/March 2018.
As an outcome, it was found that the overall stage of digitalization of HR but also the level of HR service maturity was somewhat low. It seemed that HR organizations were more focused with the HR trend areas that aim to support business strategically and structured digital HR Service Delivery and HR Service Management was not seen that important. However, when looking at the crucial elements and lessons learned when entering digitalization of HR, they support the value proposition of structured HR Service Delivery and HR Service Management. It can be debated whether HR could learn from IT – the pioneer of service management – during their digitalization journey. This study could spin-off various future researches such as design and implementation of integrated HR Service Delivery and HR Service Management into case organization.