8. Impact of Internet of Things (IoT) on Human Resource Management
The integration of the Internet of Things (IoT) into human resource management (HRM) has significantly impacted the way organizations manage their workforce. According to Parry and Tyson (2018), IoT has transformed HRM by enabling HR managers to automate their processes, gather real-time data on employees, and make informed decisions about recruitment, performance management, and talent development.
Karimi and Walter (2018) suggest that IoT technology can help organizations create smart HRM systems that are more agile, efficient, and data-driven by leveraging data analytics tools. This data can help HR managers identify employee performance trends, create personalized training programs, and monitor employee engagement.
In Industry 4.0, the integration of IoT, robotics, and artificial intelligence into manufacturing and business processes has made smart HR competencies essential for HR managers (Parry & Tyson, 2018). Smart HR competencies enable HR managers to leverage IoT technology to make informed decisions about recruitment, training, and development. The use of IoT in HRM can also improve the overall performance of the HR function by automating mundane tasks such as attendance tracking, timekeeping, and payroll processing (AlHusaini & Ahmed, 2020).
Table 1: Examples of IoT Devices Used in
HRM
|
Device |
Function |
|
Wearables (e.g. smartwatches) |
Monitor employee health and activity levels |
|
Sensors (e.g. motion detectors) |
Track employee movements and presence |
|
Smart locks |
Manage employee access to physical spaces |
|
Smart thermostats |
Control workplace temperature and energy usage |
|
Smart cameras |
Monitor employee work and behaviour |
Table 2: Benefits of IoT in HRM
|
Benefit |
Description |
|
Improved productivity |
IoT devices can help identify areas where employee productivity
can be improved, leading to higher output and efficiency. |
|
Personalized training |
Data analytics on IoT devices can help identify individual
employee training needs and provide customized training programs. |
|
Enhanced performance management |
Data collected by IoT devices can provide real-time feedback on
employee performance, allowing for more informed decision-making. |
|
Remote working |
IoT devices enable employees to work remotely and still be
monitored and managed effectively. |
|
Compliance with regulations |
IoT devices can help organizations comply with relevant laws and
regulations, such as GDPR. |
In conclusion, the impact of IoT on HRM has
been significant. The integration of IoT technology into HRM processes has
allowed HR managers to streamline their processes, make informed decisions, and
enhance the overall performance of their organization. However, HR managers
need to be aware of the compliance risks and regulatory framework associated
with IoT and ensure that they comply with data protection laws and regulations.
In this video, you can learn about Tallyos, which is the top Internet of Things (IoT) solution designed specifically for managing and improving human resource (HR) operations.
Video Source: https://youtu.be/pObeF_-1Hm8
References:
AlHusaini, S., & Ahmed, S. (2020). The impact of IoT on human resource management. In S. M. A. Tabish, M. M. Hassan, & M. A. I. A. Haque (Eds.), Handbook of Research on Industrial IoT and Smart Manufacturing (pp. 61-81). IGI Global.
Karimi, J., & Walter, Z. (2018). The internet of things (IoT) and its impact on the human resource management (HRM) function. Human Resource Management Review, 28(2), 145-156.
Parry, E., & Tyson, S. (2018). An exploration of the internet of things and its impact on HRM. Journal of Business Research, 88, 365-380.
Good article. What are the potential challenges and risks associated with adopting IoT in HRM, such as the potential for employee privacy violations or data breaches?
ReplyDeleteThank you for your positive feedback on the article. You bring up an important point about potential challenges and risks associated with adopting IoT in HRM, such as the potential for employee privacy violations or data breaches.
DeleteOne of the main challenges associated with IoT in HRM is ensuring data privacy and security. IoT devices collect a vast amount of data on employees, and this data can be sensitive and personal. HR managers need to ensure that they comply with data protection laws and regulations, such as GDPR, and take steps to protect employee data from unauthorized access, use, or disclosure.
Another challenge is ensuring that IoT devices are used ethically and transparently. There is a risk that IoT devices could be used to monitor employee behaviour and performance in a way that is intrusive or unfair, leading to concerns about employee privacy and trust. HR managers need to ensure that the use of IoT devices is transparent, and employees are fully informed about what data is being collected and how it will be used.
Lastly, there is a risk that the use of IoT devices could lead to over-reliance on technology and automation in HRM, leading to a lack of human connection and empathy in the workplace. HR managers need to balance the benefits of IoT technology with the need for human interaction and ensure that employees are not replaced or devalued by automation.
Overall, while there are potential challenges and risks associated with adopting IoT in HRM, these can be mitigated through careful planning, ethical use of technology, and ensuring compliance with relevant laws and regulations.
The blog explains that the IoT has a great impact on Human Resource Management positively and that results in making the workplace of the organization better. A very informative piece of article.
ReplyDeleteThank you for your positive feedback on the article. It's great to hear that you found the article informative and useful. The integration of IoT technology into HRM has positive implications for the workplace of the organization, and it's great to see that you recognize the potential benefits that IoT technology can bring to the HR function.
DeleteGood article Eashan. The Internet of Things (IoT) has the potential to significantly impact Human Resource Management (HRM) by providing real-time data and insights that can inform decision-making and improve operational efficiency. According to a study by Deloitte (2018), IoT can be used to collect and analyse data on employee behavior, such as work patterns and performance metrics. This data can help HR professionals better understand employee needs and preferences, allowing them to create personalised development plans and enhance employee engagement. Additionally, IoT can streamline HR operations by automating tasks such as time and attendance tracking, improving accuracy and reducing administrative burden (Deloitte, 2018). As IoT continues to evolve, it is likely to have a transformative impact on HRM, enabling organisations to leverage technology to enhance their workforce management capabilities.
ReplyDeleteThank you for sharing your thoughts on the potential impact of IoT on HRM. As you rightly pointed out, the integration of IoT technology in HRM has the potential to provide real-time data and insights that can inform decision-making and improve operational efficiency. By leveraging IoT devices, HR managers can collect and analyze data on employee behavior, such as work patterns and performance metrics. This data can be used to gain a better understanding of employee needs and preferences, which in turn can be used to create personalized development plans and enhance employee engagement.
DeleteAdditionally, as you mentioned, IoT can streamline HR operations by automating tasks such as time and attendance tracking, improving accuracy, and reducing administrative burden. This can free up HR professionals to focus on more strategic initiatives that add value to the organization.
Furthermore, the continued evolution of IoT is likely to have a transformative impact on HRM, enabling organizations to leverage technology to enhance their workforce management capabilities. The integration of IoT technology with big data analytics and AI can enable HR managers to identify patterns and trends in employee behavior and predict future outcomes, leading to better decision-making and improved organizational performance.
The potential of IoT technology in HRM is significant, and its benefits are numerous. As with any new technology, there are also potential risks and challenges that need to be addressed, such as data privacy and security concerns. Nonetheless, the potential benefits of IoT technology in HRM are vast, and it's exciting to see how it will continue to transform the way organizations manage their workforce.
Interesting topic selection, Eashan. It would be great if you focused a bit on the issues or disadvantages associated with using IoT in HRM. Based on this observation, my question to you is, what are the potential privacy and security risks associated with using IoT in HRM (sensors, trackers, wearables and cameras etc.), and how can they be mitigated?
ReplyDeleteThank you for your comment and your question about the potential privacy and security risks associated with using IoT in HRM.
DeleteAs you pointed out, the use of IoT devices such as sensors, trackers, wearables, and cameras in HRM can pose privacy and security risks. For instance, these devices collect a vast amount of data on employees, including personal and sensitive data such as health information and biometric data, which can be vulnerable to breaches or misuse. Additionally, IoT devices can be subject to cyber-attacks, which can compromise the confidentiality and integrity of the data collected by these devices.
To mitigate these risks, HR managers need to take proactive steps to ensure the privacy and security of employee data. This includes implementing robust data protection policies and procedures, ensuring compliance with data protection laws and regulations, and implementing appropriate technical and organizational measures to secure employee data. Additionally, HR managers need to be transparent with employees about the use of IoT devices, including what data is being collected, how it will be used, and who will have access to it.
Some specific measures that HR managers can take to mitigate the privacy and security risks associated with IoT in HRM include:
1.Conducting privacy impact assessments (PIAs) to identify and address privacy and security risks associated with the use of IoT devices.
2.Implementing appropriate access controls to restrict access to employee data to only those individuals who need it for their job function.
3.Implementing encryption and other technical measures to secure employee data both in transit and at rest.
4.Providing training to employees about data protection and privacy, including how to handle sensitive data, and how to recognize and report potential data breaches.
5.Regularly reviewing and updating data protection policies and procedures to ensure that they remain effective and up-to-date.
In conclusion, while IoT devices can bring significant benefits to HRM, including real-time data and insights that can inform decision-making and improve operational efficiency, they also pose potential privacy and security risks. HR managers need to be proactive in implementing appropriate measures to mitigate these risks and ensure that employee data is protected.
The article provides useful examples of IoT devices used in HRM, such as wearables, sensors, smart locks, smart thermostats, and smart cameras, along with their functions. The benefits of IoT in HRM, such as improved productivity, personalized training, enhanced performance management, remote working, and compliance with regulations, are also outlined in Table 2.the article mentions Tallyos, a specific IoT solution designed for managing and improving HR operations. While this information may be useful, readers should do their own research and due diligence before considering any specific IoT solution for their organization.
ReplyDeleteThank you for your feedback on the article and for highlighting the importance of readers doing their own research and due diligence before considering any specific IoT solution for their organization.
DeleteAs you pointed out, the article provides useful examples of IoT devices used in HRM, along with their functions, and outlines the benefits of IoT in HRM in Table 2. This information can be helpful in understanding the potential of IoT technology in HRM and how it can be used to improve workforce management.
However, it's important for readers to keep in mind that each organization has unique needs and requirements, and what works for one organization may not work for another. Therefore, readers should do their own research and due diligence when considering any specific IoT solution for their organization. This includes understanding the capabilities and limitations of the solution, its compatibility with existing systems and processes, and the potential costs and risks associated with its implementation.
Furthermore, readers should also consider the potential ethical, legal, and regulatory implications of using IoT technology in HRM, including data privacy and security, employee consent, and compliance with relevant laws and regulations.
In conclusion, while the article provides useful information about the potential of IoT technology in HRM and specific IoT devices and solutions, readers should do their own research and due diligence before considering any specific solution for their organization, and carefully consider the ethical, legal, and regulatory implications of using IoT technology in HRM.