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Development of Human Resources Based on
Competition: Literature Study in the Perspective of
Information Technology and Digitalization Era
Kamal Alamsyah1, Avid Leonardo Sari2, Pri Utami3, Fadjar Adzani4, Abdul Haris5,
Ohim Abdurohim6
1,2,3,4,5,6Universitas Pasundan Bandung
Email: Author1@gmail.com
Abstract
The research was conducted to explore competency-based human resource development. Utilizing
secondary data, the strategy was qualitative with a literature review approach. The study result stresses
the significance of competency-based human resources (HR) development for the success of
organizations or businesses in the rapidly expanding digital and technology era. The impact of
technology and digitalization on competency-based HR development, the difficulties organizations
face in creating HR in the digital era, successful HR development strategies, the competencies required
by HR in the digital era, and the role of HR in the success of organizations in the digital era have all
been covered in this paper.
Keywords: Development, Human Resources, Competency.
A. INTRODUCTION
Technology and digitalization are now essential components of our life in the
contemporary digital era. Every aspect of our lives, including how we communicate,
learn, shop, and work, has been impacted by technology and digitalization. In this
situation, human resources (HR) play a critical role in enterprises and organizations.
In the digital age, human resources (HR) are crucial factors in determining the success
of an organization or corporation; they are no longer just personnel executing jobs.
Digitalization and technology have created new possibilities for HR growth. The
process of learning and building competencies can be more effective and efficient with
technology. For instance, HR can access a variety of learning resources through e-
learning at any time and from any location, giving them more flexibility in honing
their competencies. According to a piece on SWA.co.id, "HR management is being
digitalized in training and development in addition to recruitment and selection"
(Swa.co.id, 2022).
In accordance with a study by IPDN, "The influence of digital technology
impacts the competencies required in different jobs and changes their current usage
levels in the workplace" (Kusuma, 2020). This shows that technology and
digitalization have a significant impact on how we operate as well as the competencies
that HR departments need. In order to remain relevant and contribute successfully to
their companies or businesses, HR must constantly study and expand their
competencies.
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HR development is significantly impacted by digitalization, which includes the
usage of social media, cloud computing, mobile devices, and mobile HR applications.
According to a different study, "Participants agree that digitalization has a significant
impact and affects the way they work, communicate, and interact" (SIBATIK, 2020).
This demonstrates how digitalization has changed how we interact and how we work,
which has an impact on the kinds of competencies that HR needs. The fourth
industrial revolution era offers HR the chance to build knowledge in line with cutting-
edge technology advancements. According to Forum Manajemen Indonesia, "the
fourth industrial revolution era offers opportunities for human resources (HR) to have
expertise aligned with the latest technological developments" (FMI, 2020). This shows
that the fourth industrial revolution has created new opportunities for HR to improve
their skills.
However, digitization and technology also provide fresh difficulties for the
development of HR. For instance, due to the rapid evolution of technology, the
competences that HR needs are always evolving. As a result, organizations and
enterprises need to react to these changes quickly and precisely. There are
considerable obstacles in managing human resources in the age of digitalization,
according to a study by the Faculty of Economics at Universitas 45 Surabaya
(Universitas 45 Surabaya, 2022). Businesses and public institutions must comprehend
and adjust to these developments. They must create HR development strategies based
on applicable competencies for the digital age. This context served as the inspiration
for this essay's writing. The purpose of the paper is to help readers have a better
knowledge of how businesses and organizations may improve their HR in the digital
age and how to strengthen HR competencies to handle the challenges of the digital
era. Furthermore, changes in the way work is performed are brought about by
digitalization. Numerous previously laborious jobs can now be completed digitally
thanks to digitization.
The kinds of competencies that HR needs are subsequently impacted by this.
Therefore, organizations and businesses need to take these changes into consideration
while developing HR. According to a Talenta.co article, "Along with technological
developments, essentially, employee training and development can be done digitally"
(Talenta, 2022). Digital competencies are very crucial in the modern world. Digital
skills are necessary, but they are not the only ones. Still required are additional
abilities like critical thinking, communication, and others. Therefore, organizations
and enterprises need to take a variety of competencies into account while developing
HR. According to a post on Klobility.id, "Improving the quality of human resources
(HR) through competency development is one of the positive impacts of the digital
era" (Klobility, 2022). The purpose of this document is to help businesses and
organizations create competency-based HR development strategies in the digital age.
B. LITERATURE REVIEW
1. Human Resources (HR)
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The term "human resources" (HR) refers to the people who work for a company
or organization. In addition to being a resource, human resources are a valuable asset
that may be used to further the objectives of the company or organization. Human
resource management is described by Flippo (1984) as "the planning, organizing,
directing, and controlling of the procurement, development, compensation,
integration, maintenance, and separation of human resources to the end that
individual, organizational, and societal objectives are accomplished." This definition
demonstrates the critical role that HR plays in a company or organization. In addition
to carrying out responsibilities, HR plays a strategic role in accomplishing
organizational or corporate goals. As a result, HR development becomes crucial.
Enhancing non-technical skills, such as interpersonal and personal skills, should also
be a priority in HR development. This suggests that HR development should be all-
inclusive and holistic.
This description also demonstrates that there are many different tasks involved
in HR administration, including planning, organizing, leading, and controlling. It
implies that managing HR is a difficult endeavor that calls for smart planning and
strategy. Effective HR management will make sure that HR can fully assist in
achieving the objectives of the organization or business. The function of HR has grown
even more important in the modern digital era. The kinds of competencies required
by HR are continually evolving along with technology and digitalization. HR
development must therefore be able to react to these developments swiftly and
precisely. In this situation, competency-based HR development is a useful strategy.
2. Competence
Competence is described by Spencer and Spencer (1993) as "underlying
characteristics of a person related to effective job performance." This concept
highlights that competence encompasses attitudes and behaviors that assist efficient
job performance in addition to technical knowledge and skills. This term is extremely
pertinent to the development of competency-based human resources (HR) in the
digital age. HR must possess talents in the digital age that go beyond specialized
technical knowledge and abilities to support innovation and adaptation to change.
Technical abilities, such as those relating to the use of technology and digital tools, are
becoming increasingly crucial in the digital age. Technical proficiency, however, is
insufficient on its own. Non-technical skills like teamwork, adaptability, and
communication are also necessary for HR. These non-technical skills frequently
determine how successfully HR can operate in and adapt to an increasingly digital
work environment. In the digital age, HR must also have a willingness to learn.
Because of the quick and continuous improvements in technology, information and
abilities that are useful today could not be useful tomorrow.
HR must adopt a proactive attitude toward learning in order to consistently
improve their competencies. Therefore, creating competency-based HR in the digital
age requires creating both technical and non-technical competencies as well as
encouraging a growth mindset. As a result, organizations and enterprises face
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substantial problems as well as possibilities to establish competent and adaptable HR
that can support their success in the digital era.
3. Technology and Digitalization
Oxford Languages defines technology as the "application of scientific
knowledge for practical purposes, especially in industry and commerce." Technology
is essential for improving the efficacy and efficiency of company and labor operations
as well as for developing new goods and services that can benefit consumers.
Technology has radically changed the way we work and conduct business, becoming
an essential component of many firms' daily operations. According to the Gartner
Glossary, digitalization is the "process of moving to a digital business; it is the use of
digital technology to change business models and create new revenue and value-
producing opportunities.". Digitalization involves more than just employing
technology; it also involves finding new ways to use it to add value and open up new
opportunities. The way organizations and enterprises operate has changed as a result
of digitalization, necessitating the development of new competences. Technology and
digitalization are essential to competency-based Human Resources (HR)
development. According to a study that was published in the Prizren Social Science
Journal, digitization is a significant phenomenon that has an impact on all aspects of
HRM (Human Resource Management). A study that was published in the Journal of
Social Sciences and Humanities also demonstrates the strong connection between all
HR practices and digitalization technologies. Competency-based HR development in
the digital era must take into account the function and effects of technology and
digitalization.
This involves establishing digital competences as one of the competencies that
HR must possess, in addition to employing technology and digitalization as tools to
assist HR development. A piece in the European Academic Journal of
Multidisciplinary Research also highlights the different ways in which human
resource management tactics, such as hiring and training procedures, might be
affected by digital transformation. Therefore, competency-based HR development in
the digital age must take into account the function and effects of technology and
digitalization. New possibilities for HR development have emerged as a result of
technology and digitalization. For instance, e-learning technology has made training
and development more adaptable and accessible, enabling HR to continuously
improve their competencies in accordance with organizational and job requirements.
Additionally, technology and digitalization have increased the demand for new skills,
such as digital proficiency, which is now essential in many occupations and
industries.
However, obstacles are also brought on by technology and digitization. For
instance, speedy technological advancements can soon make knowledge and skills
obsolete, necessitating ongoing learning and growth. Digitalization can also bring
about fresh challenges for HR management, such performance management in an
increasingly digital workplace and remote employment. As a result, competency-
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based HR development in the digital age must take into account the function and
effects of technology and digitalization.
In addition to leveraging technology and digitalization as instruments to
promote HR development, this also entails creating digital capabilities as a subset of
the competencies that HR must possess and adjusting to the new problems and
challenges that these two phenomena have brought about.
4. Competency-Based Human Resources Development
The goal of competency-based human resource development is to help people,
teams, and organizations build their competences so they can achieve their goals and
objectives. It is, in the words of Lucia and Lepsinger (1999), "system designed to
identify the core competencies needed for success and to evaluate individuals, teams,
and the entire organization based on those competencies." In this method, the
necessary capabilities are identified, the human resources' competencies are
evaluated, and training and development plans are created to help them improve
their competencies. Competency-based human resources development is becoming
more and more significant in the digital age. New competencies are now required as
a result of technology and digitization, which have also changed how we work and
live. Therefore, in order to compete and remain relevant in the increasingly digitalized
workforce, human resources must have current and relevant competencies.
Competency-Based Training (CBT) is one type of competency-based human
resources development. Developing the precise skills and competences required for
success in a career or profession is the main goal of the CBT training methodology.
Three topics—skills, competences, and competency standards—are the emphasis of
CBT. CBT is intended to help human resources acquire the knowledge, abilities, and
skills necessary for success in their careers. Competency evaluation is also a part of
competency-based human resources development. Competency assessment is the
procedure used to examine the competencies held by human resources and pinpoint
those that need improvement. Planning and developing efficient and pertinent
training and development programs can be aided by competency evaluation.
Developing professional human resources with noble qualities, competence,
and the capacity to adapt to changes in the workplace and business environment is
the aim of competency-based human resource development. This involves learning
digital capabilities in the digital age, which are now necessary for many occupations
and businesses. The identification, evaluation, and development of competences, as
well as adaptation to changes and the requirements of the work and business
environment, are all components of the comprehensive and integrated approach to
human resources development known as competency-based human resources
development. A comprehensive grasp of the company and the workplace is also
necessary for competency-based human resource development. Understanding the
organization's aims and objectives, consumer demands and expectations, and trends
and changes in the workplace and business environment are all part of this.
Organizations may determine the necessary competencies and create efficient and
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pertinent training and development programs using this information. Additionally,
top management must be committed to and supportive of competency-based human
resource development. The vision and direction for human resource development are
set by top management, and resources and support are provided for the
implementation of training and development programs.
5. Theories and Models
Here are several theories and models relevant to competency-based human
resources development: Individual and Organizational Competency Theory:
The International Journal of Management and Administrative Sciences
(IJMAS) found a link between individual and organizational competencies as the
foundation for competitive advantage in the Resource-Based View (RBV) strategy. In
essence, people are essential organizational resources, and an organization's ability to
perform as a whole depends on its human resources. As a result, excellent human
resource management that fosters the development of superior individual skills can
give the company a competitive edge since it combines valuable, uncommon,
challenging to duplicate, and indispensible human resource requirements. This is
consistent with the RBV perspective, which sees human resources as the hardest
resources for copycats to use and as a potential source of long-term competitive
advantage. Model for Performance-Based Competency Development: The same study
shows that a performance- and teamwork-based competency development model
may be found, examined, and then put into practice inside an organization. In order
to develop competencies, this approach highlights the value of performance
orientation and teamwork.
Human resource management theory based on competencies: Competency-
based human resource management is a concept that emerged as a change in
viewpoint in response to shifting expectations, because job-based HRM cannot meet
the needs in the face of rapid change, according to Dubois & Rothwell (2004). Different
viewpoints on competencies are influenced by organizational management's strategic
fit and integration in the evolutionary growth of HRM theory.
Competency-Based Training Model: Competency-Based Training (CBT) is one
method of developing human resources. Three topics are the primary focus of CBT:
skills, competences, and competency standards.
Always relate these ideas and models to the unique environment and goals of
the business when using them. Furthermore, it's critical to keep in mind that
competency-based human resources development involves more than just identifying
and developing competencies; it also entails constructing a work environment that
encourages and supports the use of these competencies.
6. Previous Research
The following are previous research studies relevant to the discussion in this
paper:
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Development of Human Resources Based on Competencies: Garavan (1997)
reviewed the McBer approach to competencies in this study. The study examines
alternative definitions of competences with an emphasis on character traits. The
findings of this study offer a greater understanding of the definitions of competencies
and the applications of these criteria in human resource development. A human
resource development strategy based on competencies: The authors of this essay,
Dubois & Rothwell (2004), examine crucial concerns in creating and putting into
practice competency-based human resource development strategies. The essay offers
suggestions about how to use this tactic in actual situations.
Competency-Based Human Resource Development Evaluation: The purpose
of this study by Nurhayati (2018) is to examine how competence mapping and
competency-based human resource management are related. According to the study's
findings, competency mapping can be a useful technique for competency-based
human resource management.
Model of competency-based training for public sector human resource
management and development: In their 2018 study, Chang et al. (2018), address
competency-based training (CBT) as a method of improving human resources.
According to studies, CBT can be used to build the abilities and skills required for
success in a career or profession.
Competence-based human resource management to improve the managerial
competence of first-line nurse managers: A scale development: This study, conducted
by Chang et al. (2020), seeks to improve managerial competency by creating and
psychometrically testing a competency-based human resource management scale.
The findings of this study demonstrate that managerial competence can be increased
through the application of competency-based human resource management.
The Development of Human Resource Professionals Using a Competency-
Based Model: The framework for creating and implementing competency-based
curriculum for postgraduate management education is described in this article by
Rothwell & Lindholm (2004). The article offers information on how management
education can make use of the competency-based approach.
Individual Competency Study and Its Relation to Organizational Competence
in the Development of Human Resource Management Theory: The International
Journal of Management and Administrative Sciences (IJMAS) examined how
individual skills have changed throughout the development of human resource
management theory and how these changes have affected the development of
organizational competence. The findings of this study show that organizational
competence can be developed through individual abilities.
7. Gap Analysis
In conducting a gap analysis of knowledge, we need to look at what has been
researched and discovered so far, and what has not. Based on the previous research
we have reviewed, here are some potential gaps:
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a. Practical Implementation: Although many studies have discussed the theory
and concept of competency -based human resource development, there is still
lack of research that addresses the practical application of this concept,
particularly within specific organizations or industries.
b. Influence of Technology and digitalization: While we know that technology
and digitalization have a significant impact on the world of work and human
resource development, there is still a scarcity of research specifically
addressing how technology and digitalization affect competency-based human
resource development.
c. Measurement and Evaluation: Although some research has touched upon
competency measurement and evaluation, there is still a shortage of studies
that discuss how organizations can measure and evaluate the effectiveness of
their competency-based human resource development programs.
d. Development of Specific Competencies: Many studies have discussed
competency development in general terms, but there is still a lack of research
that delves into the development of specific competencies, such as digital
competencies or leadership competencies.
By discussing the impact of technology and digitalization on competency-
based human resource development with an emphasis on actual implementation
within particular companies and industries, this article strives to close these gaps. The
paper will also discuss how businesses can assess the success of their competency-
based human resource development initiatives and how they might build particular
digital era competencies.
C. METHOD
In this study, secondary material is gathered and examined using a qualitative
methodology. In order to comprehend intricate and complex occurrences, the
qualitative technique is used, with an emphasis on deciphering the deeper
significance and context of the data. Information that has already been gathered by
the researcher or from other sources, such as reports, journals, government papers,
and related publications, makes up the secondary data used in this study. These
secondary data provide the basis of analysis to find pertinent trends, topics, and
viewpoints pertaining to the research question.
D. RESULT AND DISCUSSIONS
1. The Influence of Technology and Digitalization on Competency-Based
Human Resource Development
Competency-based human resource development has been profoundly
influenced by technology and digitalization. Technology is becoming a key
component in the process of developing human resources in this age of digitization.
It enables businesses to set up more adaptable training and development initiatives
that staff members may access from any location at any time. Employees can access
training materials online, for instance, using e-learning technology, allowing them to
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learn at their own pace and when it's most convenient for them (Huang, Liu, & Chang,
2012). Organizations may now measure and assess their employees' competency
growth in real time thanks to technology. Organizations can track employee
engagement in training programs, gauge how well they understand the training
materials, and measure the efficacy of the training programs by using a learning
management system (LMS) (Alagaraja & Shuck, 2015).
The demand for digital competences has, however, increased as a result of
digitalization. Employees need to have digital abilities to function well in this digital
age. The use of digital technology, digital communication, and digital information
search and evaluation are all examples of digital competences (Ferrari, 2013). As a
result, businesses must include digital competencies in their human resource
development plans. There are difficulties associated with how technology and
digitalization affect competency-based human resource development. How
businesses can guarantee that every employee has equal access to technology and
online learning opportunities is one of the primary problems. Organizations must also
make sure that workers have the digital skills required to take use of technology and
online learning possibilities (Van Deursen & Van Dijk, 2014).
Organizations must create a complete human resource development strategy
that not only emphasizes growing technical competencies but also digital
competencies to meet these issues. This plan should include measures to encourage
equal access to technology and digital learning opportunities for all employees, as
well as training and development programs targeted to improve employees' digital
abilities (Huang et al., 2012). It may be claimed that competency-based human
resource development is significantly impacted by technology and digitalization.
However, organizations must create a thorough strategy and take into account
potential obstacles in order to effectively harness technology and digitalization in
human resource development.
Additionally, competency-based human resource development now has new
potential because to technology and digitization. For instance, firms can use data to
better understand the needs of their employees in terms of competency development
by utilizing Artificial Intelligence (AI) and Machine Learning. Organizations can use
AI to analyze employee performance data and identify the competencies that need to
be improved in order to improve employees' performance. Additionally, AI can be
used to deliver tailored training recommendations based on the requirements of
specific employees, improving the personalization and efficiency of human resource
development programs (Cortez, Johnston, & Chang, 2021).
The way that organizations carry out training and development has also
changed as a result of digitization. The learning process is made more interactive and
interesting by the use of online learning platforms, VR, and AR technology.
Employees can, for instance, simulate their jobs using VR and AR while learning from
first-hand experiences in a virtual setting. Employees can practice and build their
competencies in a secure and controlled environment, which not only makes the
learning process more engaging (Bower, 2019).
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While digitization and technology present numerous opportunities, they also
pose new difficulties. Making sure that all employees have equitable access to
technology and digital learning opportunities is one of the main difficulties. Making
sure that staff have the digital skills necessary to take use of technology and online
learning possibilities is another difficulty. Organizations must make sure that all
workers have equitable access to technology and digital learning opportunities and
include digital skill development into their human resource development strategy to
meet these challenges. 2020 (Van Dijk).
2. Challenges of Competency-Based Human Resource Development in the
Digital Era
Organizations and businesses face several challenges in competency-based
human resource development in the digital era.
Finding the Required Competencies: Finding the necessary competencies in the
digital age is a special problem. Work procedures and job categories have changed as
a result of technology and digitization. Organizations and businesses must therefore
determine the capabilities required to adapt to and succeed in this digital world. Barii
et al. (2021) claim that HR executives and professionals need to adapt their skills and
competences in order to acquire and possess new ones. Human capital, intellectual
capital, and expertise are crucial elements of a digital transformation strategy that can
assist establish a competitive advantage.
Creating Competencies: The next challenge is to figure out how to create the
necessary competencies. To improve employee competencies, businesses and
organizations must plan and implement efficient training and development
programs. Userlane claims that the introduction of new technologies and the quick
changes in targets and benchmarks make this task more difficult.
Evaluation of HR Development Programs' Effectiveness: Organizations and
businesses must assess the success of their HR development initiatives in addition to
identifying and building competencies. They must assess whether the initiatives have
succeeded in enhancing staff members' competencies and achieving organizational
objectives.
Motivating Workers: One other difficulty is finding ways to encourage workers
to keep improving their skills. According to Userlane, each employee's employee
experience should be human-centered and tailored to them individually through HR
processes.
Ensure that employee-developed competencies are in line with the needs of the
organization by ensuring that they are aligned with them. Businesses and
organizations must make sure that the skills they learn are pertinent to both their
current work positions and the goals and strategies of the firm.
Adapting to New Technologies: New technologies are always emerging and
developing quickly in the digital world. Businesses and organizations must quickly
adopt and incorporate these new technology into their workflows. But this can be
difficult, especially if the company has no staff who are proficient in these new
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technologies. 77% of CEOs say a lack of digital skills is a major concern, according to
PWC (2018).
Managing Change: In the digital age, competency-based human resource
development frequently entails major organizational changes, such as adjustments to
organizational structure, processes, or work cultures. It can be difficult to manage
these changes, especially if staff members or other stakeholders are opposed. Prosci
(2018) claims that good change management can multiply the chances of project
success by six.
Retaining High-Quality Workers: In the digital age, workers who have the
skills that organizations and enterprises need are very valuable. However, keeping
these workers on board can be difficult, especially given the abundance of alternative
employment opportunities they have. LinkedIn (2018) reports that 94% of workers
would remain with a firm if it supported their professional growth.
Addressing Competency Gaps: Competency-based human resource
development can be very difficult when there are gaps between the competencies that
employees have and those that organizations and businesses require. Nearly 75% of
recruiters say that skill gaps make it difficult to identify competent applicants,
according to SHRM (2019).
Integrating HR Development and Technology: In the age of digitalization, HR
Development and Technology must operate in unison. However, combining
technology and HR development might be difficult, especially if they do not
complement one another. Deloitte (2017) asserts that integrating HR development
with technology is essential for getting the best results.
The proper techniques and methods must be used to overcome these obstacles.
Organizations and enterprises need to understand that competency-based human
resource development entails more than just acquiring skills and information; it also
entails building an atmosphere at work that encourages and supports employees'
ongoing learning.
3. Competency-Based Human Resource Development Strategies in the Digital
Era
The following are actions and tactics for competency-based human resource
development in the digital age.
Understanding Business Needs and Objectives: Organizations and businesses
must comprehend their business needs and objectives before developing competency-
based human resource development strategies. Understanding the organization's
vision, mission, and short- and long-term objectives are necessary for this. For
instance, if the company's goal is to increase operational effectiveness, one of the
necessary abilities can be the ability to use systems and technology effectively. In this
situation, the company may need to spend money on technology training for its staff
members or even hire new workers who already have the required technical abilities
(Alwiyah et al., 2022).
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Finding the Required Competencies: The next step is to find the necessary
competencies after understanding the business demands and objectives. These
competencies may comprise the information, abilities, and dispositions required to
meet the objectives of the company. For instance, if the firm works in the technology
sector, necessary abilities can include familiarity with the most recent technological
advancements, proficiency with a particular piece of software, and an openness to
learning and innovation (Anwar et al., 2022).
Creating Training and Development Programs: After identifying the necessary
capabilities, organizations and enterprises must create training and development
programs to assist staff in acquiring these skills. Both formal training—such as
workshops or courses—and on-the-job training—where employees pick up skills
while doing their jobs—can be a part of these programs. Organizations can also
support self-directed learning by giving staff members the chance to acquire and
advance their abilities on their own (Nurninawati et al., 2023).
Utilizing Technology: In the digital age, technology is essential for the
development of human resources. Technology can be utilized to conduct training,
monitor workers' advancement, and assess the success of HR development initiatives.
Organizations can, for instance, utilize learning management systems to monitor
employees' progress and assess the effectiveness of training or e-learning platforms
to give training (Williams & Bangun, 2022).
Fostering a Learning Culture: In addition to the aforementioned tactics, the
organization must establish a learning culture. Employee learning and skill
development are encouraged and promoted in a setting with a "learning culture." This
may be giving learners the necessary time and materials, acknowledging their
achievements in the classroom, and fostering a climate that fosters learning
(Handayani & Agustina, 2022).
4. Competencies of Human Resources in the Digital Era and How to Develop
Them
Digital competency, lifelong learning competency, critical thinking and
problem-solving competency, and cooperation and teamwork competency are some
of the competencies needed by human resources in the digital era. Organizations can
use training and development programs created especially for each competency to
develop these competencies. Organizations can also encourage staff members to
participate in self-directed learning and make use of the online learning materials that
are accessible. Here are some strategies for enhancing these abilities.
Digital proficiency is essential for human resources in the current digital world.
It requires knowledge of information and communication technologies, proficiency
with software and programs, and data management and analysis skills. Employees
must be up to date on the newest technologies that are pertinent to their positions,
such as being skilled in the use of digital platforms, particular software, or data
analysis tools. Organizations can organize work teams to share knowledge about
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cutting-edge technologies, offer online learning tools, or conduct technology training
to help employees increase their digital competency (Smith & Petersen, 2021).
Competency in Lifelong Learning: In the rapidly evolving digital age,
employees must be able to continue learning. This capability calls for the capacity to
learn new things constantly, adjust to changes, and pick up new skills as necessary.
By enabling access to online learning materials, allowing continuous learning
programs, and fostering an environment that encourages learning and creativity,
organizations can promote lifelong learning competency (Kompier & van den Heuvel,
2021).
Competencies in Critical Thinking and Problem-Solving: Employees in the
complicated digital world need to be able to think critically and solve problems. This
talent entails the capacity to assess circumstances, recognize issues, and come up with
creative solutions. By creating challenges that stimulate employees' creative and
analytical thinking, performing critical thinking training, and fostering team
collaborations to solve problems, organizations can improve this competency
(Schmidt & Guo, 2020).
Competencies in collaboration and teamwork are crucial in today's digital,
globally connected world. Employees must be able to interact with people from
different backgrounds, work well in teams, and communicate clearly. By encouraging
cross-departmental teamwork, offering training in communication and collaboration,
and fostering a collaborative workplace atmosphere, organizations can foster the
development of this ability (Vlaar et al., 2020).
Organizations must implement a sustainable and ongoing strategy for building
human resource competences in the digital age. Organizations may also use project-
based or simulation-based learning techniques, utilize online learning tools, and
encourage staff to participate in learning communities and knowledge sharing in
addition to training and development programs (Lai et al., 2021).
5. The Role of Human Resources in Organizational Success in the Digital Era
The following essential points highlight the critical role that human resources
(HR) play in an organization's success in the digital age.
Organizations must react to sudden and unexpected changes in the constantly
changing digital age. Technology and digitalization-related HR professionals can
assist businesses in keeping up with the newest trends, making the required
adjustments, and maintaining a competitive edge. HR specialists with the right
technology management and innovation skills can help businesses stay viable and
relevant in the digital era (Davenport, 2018).
Driving Innovation: In the competitive and changing digital age, innovation is
essential. HR specialists that are skilled in cooperation, innovative thinking, and
seeing new opportunities can be the main forces behind innovation in an
organization. HR professionals may create new solutions, use technology in creative
ways, and contribute value to the organization thanks to their expertise and abilities
(Bui et al., 2021).
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Achieving Business Goals: In the digital world, HR personnel with the right
capabilities can assist an organization in achieving its goals. For instance, HR experts
with technology skills can help the company build and implement effective solutions
if the business purpose is to increase operational efficiency through the use of
technology. Achieving corporate goals can be greatly aided by HR experts who are
able to manage initiatives, adapt to change, and collaborate (Huang et al., 2020).
The development of HR based on competences is essential to boosting
competitiveness and organizational performance in the digital era. Through training
efforts, career development programs, and the establishment of a culture that
encourages learning and creativity, organizations need to invest in the development
of HR expertise. Organizations may increase their position in the market and succeed
over the long run by having HR personnel that are capable and equipped to handle
problems in the digital era (Mathis & Jackson, 2021).
E. CONCLUSION
Competency-based human resources (HR) development has become essential
for the success of organizations and businesses in the digital era of ongoing
technological improvements. The impact of technology and digitalization on
competency-based human resource development, the difficulties organizations face
in creating HR in the digital era, successful HR development strategies, the
competencies needed by HR in the digital era, and the part played by HR in
organizational success in the digital era have all been covered in this paper.
The impact of technology and digitalization has changed the nature of
company, necessitating the presence of HR departments with technical expertise. To
promote HR growth, organizations must identify the necessary competences, create
efficient training and development programs, and use technology. Determining the
necessary competencies, inspiring people to enhance their competencies, and
maintaining alignment between the developed competencies and organizational
demands are challenges in the growth of HR in the digital era.
Organizations need to concentrate on creating digital capabilities, lifelong
learning competencies, critical thinking and problem-solving competencies, as well as
cooperation and teamwork competencies, while establishing HR in the digital era. To
encourage the development of these competencies, training programs, career
development initiatives, and a supportive learning culture should be put in place. In
the digital era, competent HR can help firms adapt to changes, drive innovation, and
achieve business goals.
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