HR management in the conditions of digital transformation using innovative methods

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HR management in the conditions of digital transformation using innovative methods

Iryna Ivakhnenko

Doctor of Economics, Professor,

Kyiv National University of Construction and Architecture,

Kyiv, Ukraine,

Dmytro Prykhodko

candidate of technical sciences, associate professor,

Kyiv National University of Construction and Architecture,

Kyiv, Ukraine,

Mykhailo Churylo

graduate student of the Department of Construction Management,

Kyiv National University of Construction and Architecture,

Kyiv, Ukraine,

Abstract

The field of application of digital technologies in human resource management is currently in the process of formation and development. This paper presents a systematization of innovative methods of human resource management in the digital economy. The main task of human resources management in the context of digital transformation is to ensure the effective performance of employees and increase labor productivity in order to move the organization to a new path of development. innovation digital transformation

Keywords: innovation, digital transformation, human resources management, management methods, enterprise, efficiency



Formulation of the problem

In today's market economy and fierce commercial competition, only those businesses that are able to provide their customers or clients with high quality service can survive the fierce competition. In order for a company to offer a high level of service, it must have professionally trained and qualified staff. Therefore, in order to operate efficiently, companies must apply innovative methods of human resources management.

Analysis of recent research and publications

The issues of application of innovative methods of personnel management in domestic practice are reflected in the works of such scholars as V. Danilyuk, V. Brych, O. Borysyak, V. Vergun, S. Sardak, V. Stupnytskyi, V. Hetman, A. Bilodid and such foreign scholars as J. K. Laffey, D. P. Norton, J. Grayson and others. However, the study of the modern practice of innovative management of personnel technologies in the current economic environment requires more and more attention.

The purpose of the article

The purpose of the study is the analysis of the transformation of HR technologies and the identification of the main focuses of HR management under the influence of digitalization of business processes. The object of research in this paper is innovative methods of personnel management in the context of digital transformation. The subject of the study is the theoretical and methodological foundations and practical aspects of the implementation of innovative methods for personnel management.



Presenting main material

The current economic environment stimulates investment in digital transformation, as emerging markets try to increase their demand for technology to drive further growth, and developed markets look for new ways to reduce costs and innovate. This is becoming a "circle of prudence and growth": digital technologies are driving consumer demand and income, education and training, as well as the efficient use of capital and resources, leading to increased economic growth, especially in emerging markets.

The digital space is an extremely efficient system of social and economic relations, and digital technologies have a direct impact on its key element - added value. Penetrating many areas of economic activity, digital transformation projects should stimulate investment attraction, transform traditional industries into efficient, high-tech competitive industries, and create a range of new opportunities for the realization of human potential. To study innovative methods of personnel management, first of all, it is necessary to understand what personnel management is.

Different scientists interpret the concept of "personnel management" in different ways. Vinogradsky M. D. in his textbook writes that: "Human resource management is the activity of an organization aimed at the effective use of people (staff) to achieve the goals of both the organization and individual (personal)" [2]. Danyliuk V. M. interprets the term "personnel management" as part of the functional area of personnel management as the main mechanism of the organization [1].

Krushelnytska O. V. and Melnychuk D. P. write that personnel management is a purposeful activity of the organization's management to develop the concept, strategies of personnel policy and methods of human resource management. This is a systematic, systematically organized impact through a system of interrelated, organizational, economic and social measures aimed at creating conditions for the normal development and use of the potential of the workforce at the enterprise level [9].

S.E. Sardak defines human resources management as a constant impact on the staff in different time links to ensure the development of the enterprise (application of actions determined by the management, personnel marketing, evaluation, staff development, dismissal, organization of personnel records, etc.) The scientist believes that human resources management is the management of all employees: skilled and unskilled, full-time and temporary, or part-time, forming the labor potential of the enterprise [4].

The more efficiently HR management is carried out at an enterprise, the more efficiently it operates, strengthening the competitive advantages of this enterprise, increasing solvency and profitability.

Today, personnel services of enterprises solve the following problems related to personnel management [6]:

1) planning of labor resources - determination of the need for personnel depending on the production development strategy;

2) formation of a personnel reserve, selection of candidates, determination of reserve groups

3) selection of personnel from the reserve groups;

4) execution of labor contracts;

5) assessment of the level of labor activity of each employee;

6) transfer, promotion, demotion, dismissal depending on performance;

7) career guidance and adaptation - involvement of new employees in the team and production process;

8) determination of salaries and benefits in order to attract, retain and secure personnel;

9) personnel training;

10) training of management personnel.

At the current stage of society's development, the solution of these tasks requires different innovative skills and defines new requirements for the level of personnel training, when there is a rapid aging of knowledge, skills and abilities of personnel, which is expressed in the lag of individual knowledge from modern requirements for the position and profession. Consider the main HR management systems (Fig. 1.).

Fig. 1. Components of the HR management system

Recruitment is a purposeful effort to attract candidates with the qualities and skills necessary for the current and long-term needs of the organization. In other words, it is the search, testing, and hiring of people who are able and willing to work, have the competencies and knowledge required by the employer, and share the company's values.

High-quality recruitment:

- will lead to the company achieving the required results;

- create a good "microclimate" in the team;

- will allow the manager to focus on business development instead of total control over the work of subordinates;

- help build trusting and productive relationships with partners and contractors.

Personnel evaluation is the process of determining the effectiveness of the organization's employees in performing their job duties and achieving organizational goals or the process of determining the compliance of personnel qualitative characteristics (abilities, skills, motives) with the requirements of a position or workplace.

Personnel assessment provides information on:

- employee performance;

- potential capabilities of specialists and prospects for their growth;

- the reasons for the ineffective work of individual

- reasons for the ineffective work of individual employees;

- needs and priorities in training and professional development [8].

Staff adaptation is the process of familiarizing employees with the conditions and rules of work in the organization, as well as helping to integrate the employee into the team.

Employee onboarding helps to achieve several goals, including:

- reducing the costs required to bring an employee up to speed. With the help of adaptation, the employee understands what is required of him or her and how to accomplish the tasks, so he or she will work effectively faster;

- reducing uncertainty among newcomers. People who have just taken up a position often get lost in the team, don't know who to ask for help and what to do in a difficult situation. Adaptation will allow them to quickly understand all the intricacies of the organization;

- reducing the likelihood of early dismissal. Often, newcomers feel unnecessary in the workplace, so they are forced to quit. Adaptation will help them feel like an important part of the team;

- saving time for each employee. A person who has not yet gotten up to speed is forced to ask for help, thereby taking up other people's time.

Competently conducted events will allow the employee to quickly understand all the features of the work and not distract colleagues.

In addition, the adaptation of new employees develops a positive attitude to work and specialists have additional motivation to perform tasks quickly and efficiently. A person who is not yet up to speed is forced to ask for help, thereby taking up other people's time.

Staff motivation is the creation of favorable conditions and incentives that encourage employees to work with greater dedication, with a focus on quality and results.

With the help of motivation, the company's management can solve the following tasks:

- attracting and retaining the best specialists in the organization;

- recognizing the activities of employees who have achieved significant results in order to further stimulate their creative activity;

- demonstration of the management's attitude to high performance;

- popularization of the results of the best employees' work;

- applying various forms of merit recognition;

- improving the moral and psychological state of employees through an appropriate form of recognition;

- ensuring increased labor activity of the company's team.

Let us consider several examples of motivation forms used in foreign companies. One of these forms is creating comfortable working conditions for the staff. In this way, Google takes care of its employees, taking into account all aspects, from the color scheme to the lunch buffet. Employees are allowed to play roller hockey twice a week in the parking lot. In addition to workspaces, the Googleplex houses a sports complex, a small hospital, a dry cleaner, and a hairdresser.

Staff training is the development of professional skills, abilities and knowledge of employees in accordance with the company's goals and strategy. The purpose of the company's personnel training is to achieve the maximum level of personnel efficiency by improving the level of knowledge and professional skills of employees.

The purpose of staff training:

- maintaining the required level of qualification of the company's personnel, taking into account the requirements of existing production and prospects for its development;

- preservation and rational use of the company's professional potential;

- increase the competitiveness of the company's products and services through the dissemination of knowledge and experience in the use of modern technologies, effective methods of labor organization, management and production by the company's personnel;

- support for innovative transformations of the workplaces of the company's enterprises to ensure the growth of labor productivity and achieve a modern level of production;

- maintaining a high professional level of personnel and their familiarity with modern technological achievements;

- creating conditions for professional growth and self-realization of employees in a market economy by increasing their motivation to work, using the latest Russian and foreign programs, training tools and technologies;

- raising the level of professionalism and competence of personnel at enterprises, their effective use in accordance with production demands and prospects for its development;

- improving the skills and abilities necessary for effective work;

- preparing employees for rotational transfers and possible replacement of their colleagues.

Personnel career management is a set of measures taken by the company's HR department to plan, organize, motivate and control the career development of personnel based on their goals, needs, capabilities, abilities and inclinations, as well as on the goals, needs, capabilities and socio-economic conditions of the company.

Career management means that, starting from the moment an employee is hired by the company and ending with his or her expected dismissal, it is necessary to organize a systematic horizontal and vertical promotion through the system of positions or jobs. The employee should know not only his or her prospects for the short and long term, but also what indicators he or she must achieve in order to be promoted.

The need for career management measures is due to the fact that most employees tend to be passive about their careers and believe that their managers should deal with these issues. That is why many Western firms require career planning, i.e., identifying ways to achieve their goals. Human resources departments of Western firms usually draw up a five-year scheme of possible moves, taking into account expected vacancies, and encourage personal career planning.

There may be the following options:

1) promotion or demotion with expansion or reduction of responsibilities and rights.

2) improving the level of qualification, accompanied by the assignment of more complex tasks, salary growth, but retaining the position.

3) changing the range of tasks and responsibilities without a promotion and salary increase, i.e. rotation (especially typical for Japan). The basis of career planning is a career chart.

Methods of personnel management are methods of influencing teams and individual employees in order to coordinate their activities in the production process.

Based on the analysis of literature sources, innovative methods of personnel management are systematized by functional areas of personnel management (Table 1.).



Table 1.

Innovative methods by functional areas of HR management

Functional areas of HR management	Innovative methods of HR management
Recruitment and selection of personnel	Executive Search
	Staff leasing
	Outstaffing
	Screening
	Recruiting
Staff adaptation	Shadowing
	Buddying
	Job-shadowing
	The tell-show-do method
Personnel evaluation	Trainings (business game, simulation game, discussions, debates, etc.)
	Assessment center
	Organizational tests
Staff motivation	Grading
	Gamification
	"Social card of an employee"
Staff training	Basket method
	Action Learning
	E-learning
	Case study
	Master classes
	"Virtual school"
	"Corporate University"
	Secondment
	Coaching
Career management	"Career portal
	"Job fairs"

Executive Search - with its help, recruitment agencies search for highly qualified senior professionals. The technology allows you to find the right people in competing companies and then convince them to work for your company.

Personnel leasing is a temporary or fixed-term engagement of personnel, which helps to solve the company's problems in the face of changing priorities. This service allows you to get the necessary labor resources for a certain period of time, after which the customer can decide to dismiss, continue cooperation or hire employees. Staff leasing allows you to engage an unlimited number of employees without hiring them, thereby reducing taxation.

Outstaffing is the withdrawal of personnel from the staff of the customer company and their registration in the staff of the provider company. The idea of outstaffing is that employees are formally employed by the provider company, but at the same time performed their duties at their previous place of work.

Screening is a "superficial selection" that is carried out on formal grounds: education, age, occupation, and work experience. It is used to search for the necessary lower-level support and service personnel, taking into account formal characteristics: gender, age, education, work experience, etc.

Recruiting is an "in-depth selection" that takes into account the personal characteristics and business qualities of the applicant. With the help of recruitment, recruitment agencies search for qualified middle managers, taking into account the requirements for personal and professional qualities of candidates, using existing candidate databases.

Shadowing is the provision of an opportunity for an employee nominated for promotion, retraining, or rotation to shadow an employee holding a certain position for at least two days. This allows the nominee to "immerse" himself or herself in the specifics of a particular job, and to determine the nature and scope of the knowledge, skills and competencies required.

Buddying is a method that involves assigning a partner to an employee, whose task is to provide constant feedback on the actions and decisions of the employee assigned to him in order to identify bottlenecks in his work [3]. Buddying is a technology that involves adaptation through the establishment of equal friendships with a colleague. This is primarily support, assistance, and to some extent, guidance and protection of one person by another in order to achieve their results and goals. Unlike mentoring, there is no hierarchy, and the relationship is built on providing objective and honest feedback with support in performing and learning new skills.

Job-shadowing is an adaptation technology whereby a new employee shadows a more experienced employee, accompanies him or her during the working day, discusses production situations with him or her, and receives real experience and quality feedback. The jobshadowing method is successfully used in US companies. They are confident that this method is very effective for high-tech professionals of any level.

The tell-show-do method helps to build the right relationship between the coach and the newcomer, and to quickly and efficiently learn new skills. At each stage of tell-show-do, the mentor explains the task to the trainee, having previously determined the sequence of steps:

1. Tell. Large tasks are divided into several parts and conducted in separate sessions. The mentor asks questions to the employee to make sure that he or she has absorbed the information. The employee retells the content of the task in his or her own words.

2. Show. The coach shows how to perform the task, commenting on each step along the way. When he is finished, he asks if everything was clear.

3. Do. The new employee performs the task himself. The mentor can ask the employee to do a particular step again if he or she is not satisfied with the quality of the work. Upon completion, the mentor gives feedback to the employee and agrees with him or her on the criteria by which the skills developed will be evaluated [11].

Trainings - a minimum of information and a maximum of exercises to develop skills are given. The goal is to simulate situations close to reality in order to develop certain practical skills, learn new behaviors, change attitudes towards performing tasks, etc.

Assessment center is a technology for assessing the professional qualities of employees based on modeling key aspects of their activities. It allows employees (or candidates for a vacancy) to demonstrate their knowledge, skills, abilities and personal qualities in certain situations and determine whether the competencies of the organization's personnel are consistent with its goals, strategy, corporate culture, and technology structure using specialized assessment procedures. The essence of the method is to create exercises that simulate the key aspects of the evaluated person's activities in order to identify the existing professionally important qualities.

Grading is a modern system of evaluating and ranking positions, which results in the distribution of positions into grades according to their value for the enterprise, the purpose of which is to motivate employees. The purpose of introducing a system of job levels (grades) is to create a basis for making effective management decisions regarding employee salaries. Subsequently, the employee's social package is determined based on the employee's position in a particular grade. In addition, in many cases, the amount of bonus payments is determined on the basis of the employee's salary. Thus, by creating an effective grading system, a company receives a tool to influence at least three components of personnel costs: salaries, social package, and bonuses. The main advantage of the system from the employee's point of view is the transparency of prospects. An employee always understands what he or she must do, how and within what time frame to get a pay rise. In other words, the grading system allows employees to get an idea of the possible changes in their income level in different career moves. This system helps the company's management in making decisions when indexing salaries and determining the allowable amount of remuneration for new positions; HR (recruitment) helps to simplify the administration of the corporate incentive system.

Gamification is a new business concept based on the application of approaches typical of computer games in software tools for non-game processes and the use of the best ideas of loyalty programs, game mechanics and behavioral economics in real business processes. In fact, gamification is the search for nonstandard solutions that help make any work more interesting. Like any new technology, "gamified" tools have value not in themselves, but due to the new functionality they can provide for the management mechanism and the realization of competitive advantages.

"Employee social card" is a program of "non-monetary motivation" for employees. It consists in the formation of virtual accounts of employees in the "social budget" of the company, the choice of benefits according to a pre-established differentiation of their value, etc.

Basket method is a method of simulating situations of "managerial activity" in which an employee takes on the role of a manager. It is used to determine whether a person is able to work with a large amount of information and make the right decisions in non-standard conditions. The specialist is deliberately put in a situation that is called a "situation of intense need" in psychology. They cannot let others down on a subconscious level, so they try to solve the problem in a short period of time. During training in the basketball method format, an employee: conducts selfanalysis; evaluates other people's experience; learns to respect other people's opinions; learns to defend his or her decisions [13].

Action Learning is a learning method for solving real problems in practice in the course of an organization's activities. Action Learning simultaneously solves problems and develops leaders, as its simple rules force participants to think critically and work together. Action Learning is especially effective for solving complex problems that may seem intractable. It increases the norms, cooperation, creativity and courage of groups. The Action Learning facilitator helps group members think about improving the functioning of their group rather than solving problems. In this way, Action Learning participants become effective leaders by solving complex problems.

E-learning is the use of telecommunication technologies to train staff at a distance. This includes Skype training, Zoom training, webinars, etc.

Case study is an interactive technology for short-term training of managers based on business situations. The goal is to teach how to analyze information, sort it to solve a problem, identify key issues, and choose the best solution.

Master class is one of the forms of effective professional, active learning, during which a leading (recognized) specialist tells and shows how to apply a new technology or a new method in practice [5].

"Virtual School" is the organization's internal portal. It allows any employee to watch lectures by experts in the field of study, study at distance learning programs of Western business schools, and participate in remote business games and webinars.

"Corporate University" is a system of training for the company's staff. It involves the use of traditional and non-traditional forms of business education, generalization of knowledge and innovations that are the intellectual property of the company.

Secondment is a type of rotation that involves the temporary transfer of an employee to another place of work, to another unit of the organization with the subsequent return to the previous duties [5].

Coaching is a method of direct training of a less experienced employee by a more experienced one in the process of their interaction. It is used as an effective tool for personal and personal development, which contributes to the realization of a person's inner potential and increases labor efficiency.

"Career portal" is a source of information for job seekers about open vacancies, working conditions, job benefits, test tasks, employee reviews, the company as an HR brand, etc. It can be a whole website, a page or a subdomain of

a corporate website.

"Job fairs" are specialized events where employers and students/graduates have the opportunity to meet each other. Employers present their companies, available vacancies, internship programs, or youth recruitment programs, and create an employer brand among visitors.



Conclusions

The current processes of accelerating globalization and increasing competition in the markets require enterprises to introduce innovations in the practice of human resources management.

By analyzing this systematization of innovative methods, it can be concluded that digital technologies in the human resource management system can be applied to any area of human resource management (recruitment, adaptation, assessment, motivation, etc.).

It should be noted that there are many methods of HR management, but despite this, their improvement and search will never stop. After all, people and technology are constantly evolving, so for an organization to be effective, it needs to look for more innovative methods of managing its employees.

Innovative methods of human resources management should be based on three principles: independence, professionalism and commitment.

The use of innovative methods allows for effective recruitment and adaptation of personnel with minimal time and money, as well as for organizing an effective and motivating training process, which further contributes to the improvement of employees' skills and the growth of staff satisfaction with their career and work at the company.



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