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Unveiling the Transformative Effects of Industry 4.0 on Human Resource Management: A Comprehensive Review

Abstract

Purpose and Nature: This review paper aims to analyze the impact of Industry 4.0 on Human Resource Management (HRM) functions. As a critical function in organizations, HRM has been significantly impacted by the digital transformation brought about by Industry 4.0. Approach: To achieve the purpose, this paper reviews 50 articles on the topic and identifies critical factors and challenges HR professionals face in managing the digital transformation of HRM functions. The methodology adopted is a systematic review of the literature on the impact of Industry 4.0 on HRM. Key Findings: The findings suggest that Industry 4.0 has enabled HR professionals to automate and streamline recruitment processes, provide opportunities for remote learning and personalized training, enable real-time monitoring of employee performance, allow for more personalized and flexible compensation packages, provide real-time data on workforce trends, and allow for more objective and data-driven succession planning. Challenges and Suggestions: The use of Technology in HRM also poses challenges, such as reducing the importance of human interaction and decision-making, increased surveillance and stress, and the need for HR professionals to have a better understanding of technology. To cope with these challenges, HR professionals need to balance technology and human interaction, invest in developing digital skills, and ensure that the use of technology is ethical and compliant with privacy laws. Implications and Originality: The paper concludes with implications for HR professionals and future research directions. The study highlights the importance of HR professionals in managing the digital transformation of HRM functions and the need for them to adapt to new technologies. The paper's originality lies in the systematic review of the literature on the impact of Industry 4.0 on HRM and the identification of critical factors and challenges HR professionals face in managing digital transformation

Md. Julfikar Ali *, Mst. Nishrat Zaman

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