Transformation of the Personnel Management System in the Conditions of Digitalization of HR Processes

Abstract

Human capital is the driving force behind the digital economy. The use of digital technology has a significant impact on the entire life cycle of personnel in an organization, including hiring, onboarding, and firing. The authors examined the essence of the personnel management system, various models for building a personnel management system in an organization, and studied applying a particular model for a specific organization. The authors studied and visually presented the features of objects, subjects and goals of the personnel management system. The authors also examined the impact of digitalization on the personnel management system, what requirements are imposed on personnel's professional competencies, and new and already used trends in HR automation and recruiting that will help to work better and more efficiently. Generalization of theoretical and empirical experience, cognitive technologies based on the use of artificial intelligence and digital data in HR management allowed the authors to highlight innovative solutions and propose an algorithm for transforming the personnel management system in the context of digitalization of HR processes. Besides, the authors proposed criteria and a scale for assessing the effectiveness of the transformation of the personnel management system in the context of the digitalization of HR processes. Thanks to this, as well as the use of such elements in the framework of personnel management as cloud technology, the ability to work remotely, big data, social media and artificial intelligence, companies, can increase their lead over competitors.