HR5.0- Era of Digitalization

Evolution of Human Resource
The world has witnessed and passed through stages of rapid industrial revolution with visible differences from each other. Industrial Revolution 1.0 was more than conventional mass production, it was Industrial Revolution 2.0 where manual labor was introduced. This role showed proper allocation of resources. Industrial Revolution 3.0 occurred in the 1970s with advances in computing and automation. Such advances have enabled humans to program networks and machines. Now, we move into the current industrial revolution which is Industry 4.0. We have seen various digital and physical changes in society. This industrial revolution will cause a huge change in employment. Thus, it is clear that the HRM department needs to be prepared for this change and provide the right information to the practitioner. Thus the question arises whether the HRM department is ready for such a massive change?

Competency model
Through McClelland’s work, studies on competence gained some momentum. A lot of research has been done on the subject. HR practitioners need to ensure that their skills are updated to meet the needs of the people and the organization and understand their work environment. Various competency models have been developed and the most prominent model currently in use is the Ulrich model. This model includes four roles differentiated according to their operational or strategic focus. This model currently serves as a global guideline for various organizations. Competency models serve as a foundation for the development of HR practitioners professionally.

In the era of digitalization, the need for skills is increasing at a high pace. There is a global expectation from the HR practitioner to be able to tackle the digital war that is transforming HR through technology. Digitalization demands the evolution of HRM to the next level which requires improved skills and agile HR processes. This ongoing process of digitalization is expected to improve operational, transformational and relational aspects of HR functions. The requirement for a competency model is to go through current competency gaps and provide quality improvement to ensure the function can add real value.

Towards HR5.0 Model
Core competencies are the key to which HR professionals need upon. With the core competencies as the baseline for HR practitioners to improve the performance improvement and talent acquisitions. This will lead to a new era of HRM which is known as HR5.0. The HR 5.0 model is depicted in the model below:

In the above diagram HR professionals find three main domains and they are Business Intelligence Domain, Professional Behavior-Leadership Domain, Service Orientation-Execution Domain. All three are important for HR professionals to excel in their careers. With HR 5.0 technology solutions, organizations explore the potential of digitization and professionals gain significant value from the diversity of innovation and creative thinking. All these capabilities enable HR professionals to combine knowledge that provides a competitive advantage over organizations that are a bit slower with digital transformation. Talent management is significantly improved through data analysis by identifying capabilities that perfectly match a specific position.

In conclusion, HRM plays a key role in the sustainability and competitiveness of an organization. According to a survey conducted by Deloitte, the budget for digital transformation is set to increase by 25%. With the advent of machine learning, artificial intelligence, automated change management, blockchain and more. There is a greater need for HRM professionals to support the organization’s day-to-day business. Above all, there will also be a strategic contribution as HR’s strategic driver transforms the organization into a digital platform. HR professionals are at the forefront of strategic leadership by driving and developing the technology solutions required for today’s work era.

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