Strategic Approach to Measuring Digitalization of Human Resource Management Systems: Example of Russian Companies

Abstract

Objective. Development and empirical approbation of a strategic approach for evaluating digitalization of human resource management systems (HRM). Background. The electronic HRM (e-HRM) system has reached a transformational level of development, attracting increased attention from researchers and practitioners. However, the concept of e-HRM is still in its early stage of development. This paper contributes to the discussion about operationalizing this phenomenon by proposing an original e-HRM scale based on stakeholder theory and the Harvard strategic model of HRM. Study design. The paper investigated a model of strategic approach to measuring digitalization of HRM, namely how stakeholders' interests are related to e-HRM processes and outcomes. The proposed scales' reliability and validity were tested using exploratory and confirmatory factor analysis, while hierarchical regression analysis was used to check the presence and nature of the relationship. Participants. The study used a random sample of respondents from 449 companies in Russia from 16 industries located in cities with a population of more than 800 thousand people and having more than 50 employees. Measurements. The authors' scales include e-HRM, stakeholder interests, and e-HRM results. Results The research introduces systematic approach for evaluating the processes related to digital transformation of HRM in Russian companies, which allows assessing the results of e-HRM from the strategic perspective. The proposed scales demonstrate a high level of validity and reliability. The research showed that strategic perspective to e-HRM, being based on interests of stakeholders, affect both e-HRM (β = 0,379) and e-HRM results (β = 0,455). Conclusions. The strategic approach based on stakeholder theory and the Harvard HRM model has proven to be an effective methodology for assessing e-HRM: the higher the degree of orientation of the company's HRM department's activities towards stakeholder goals, the higher the level and effectiveness of digitalization. The evaluation methodology includes a 5-factor model for analyzing e-HRM according to the following criteria: 1. the degree of implementation of digitalization in the implementation of modern HRM programs and practices; 2. the efficiency of the organization of HRM digitalization processes; 3. the practical value of the implementation of digitalization processes in relation to the achievement of key HRM objectives in the company.