Value Derived from Digitalised Human Resource Management: Perspectives from South Africa

Abstract

A lack of empirical research on the value derived from digitalised human resource management contributes to the sluggish adoption of its technology in organisations, also in South African workplaces. In this article, we present empirical findings of the value derived from digitalised human resource management. These findings are based on the observations of 312 human resource management professionals and line managers in the automotive industry in South Africa. The data were collected by means of a cross-sectional quantitative survey design using purposive and snowball sampling techniques. The findings of this study provide evidence of perceived value and impact value derived from digitalised human resource management. The perceived value of digitalised human resource management was evident for (1) performance, (2) stakeholders, (3) employees, and (4) talent creation, whereas the impact value was observed for (5) employment relations, (6) time and cost savings, and (7) human resource administration and control. These seven value factors were categorised as operational, relational or transformational, indicating the level at which the value of digitalised human resource management was realised. In the study, we provide a strong case for investing in the technology of digitalised human resource management to optimise strategic human resource management and maximise digitalised value in organisations. We caution human resource management practitioners that digitalisation is not an end goal, but a means to greater organisational effectiveness and stakeholder satisfaction.