Reengineering Human Resource Management in the Digital Economy: Drivers, Transformation Pathways, and Strategic Safeguards

Abstract

: The pace of growth in digital economy has transformed organizational functioning and posed challenges to the existing human resource management models. This paper investigates HRM model transformation in the digital economy: a comparison of who, why and how. Based on a multilevel analysis of literature as well as a single most similar case study, and applying culture economy as theoretical concept, this article takes up an argument in the previous research that people need to establish more detailed descriptions of how different types of Human Resource Management (HRM) transformation affect differently. The result indicates that the transformation of HRM is due to enterprise development requirements, changing employee expectations, technological progress and external environmental forces. Furthermore, the research finds three (interdependent) change trajectories-technology enablement, process reengineering and cultural reconstruction-which characterize how digital HRM initiatives are approached. By emphasizing the need for a fit among technology adoption, organizational process and behavior, this study provides a unified view in comprehending HRM transformation, with practical implications for firms that have sought to improve their human capital management strategy in digital age.