Open AccessTHE IMPACT OF DIGITALIZATION ON HUMAN RESOURCE MANAGEMENT PRACTICES IN THE AUTOMOTIVE MANUFACTURING INDUSTRY
Author(s) -
Neeta Jayabalan,
Zafir Khan Mohamed Makhbul,
Sudhashini Nair Senggaravellu,
Muthaloo Subramaniam,
Nurliana Adliah Binti Ramly
Publication year - 2021
Publication title -
xi'nan jiaotong daxue xuebao
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 21
ISSN - 0258-2724
DOI - 10.35741/issn.0258-2724.56.5.48
Subject(s) - automotive industry , human resource management , business , scope (computer science) , industry 4.0 , manufacturing , human resources , work (physics) , information technology , knowledge management , marketing , engineering , management , computer science , mechanical engineering , economics , embedded system , programming language , aerospace engineering , operating system
The advancement of digital technologies such as electronic devices, information systems, mobile or internet technologies, etc., which is presently known as the Fourth Industrial Revolution, generates real opportunities for organizations to focus their activities on core competencies and achievable goals. It was inevitable for human resource management (HRM) to adopt such an advancement that drastically influenced businesses’ work and management. Digital technology has caused the total re-evaluation and improvement of the procedures and systems concerning different capacities throughout businesses, and the HR role is not an exception. Therefore, this study aims to investigate the impact of digitalization technologies on HRM practices in the automotive manufacturing industry in Malaysia. Recruitment and selection, training and development, and performance appraisal and compensation are the main HRM practices identified as independent variables. A total of 203 respondents were selected for an online survey among employees in the automotive manufacturing industry in Pekan, Pahang. The results show a significant relationship between digitalization technologies and all human resource practices addressed in this study except compensation where the data was obtained and examined using IBM SPSS (Version 27) statistical software. The findings of the study revealed that HRM practices have a significant association with digitalization technologies and, occasionally, with the current and future needs of industrial revolution in manufacturing the industry; further studies can widen their scope to other industries in making Malaysia a developed nation holistically from political and socio-economic perspectives.