Digitalization of Human Resource Management and Organizational Performance: Identifying Dimensions Through an Exploratory Factor Analysis

Abstract

Human Resource Management has been transformed significantly through digitalization and e-HRM. As digital technology is now integrated into the HRM function, organizations can increase efficiency through administration improvements, information sharing, improving employee experience and aid in managerial decision-making processes. While there has been significant academic interest in this topic, the literature to date is still under-researched on empirical structure of the dimensions of HR digitalization, especially within developing contexts. The study’s purpose is to determine the underlying dimensions of HR digitalization and its impact on organizational performance. This study conducted a survey of individual professionals from their workplaces to assess HR digitalization and their perspectives on measuring the effectiveness of the HR Digitalization process on their organizations’ success. A structured questionnaire was developed for use with the surveys; each of these surveys included a variety of measurement variables for HR digitalization practices and organizational performance. An exploratory factor analysis was used to identify the key dimensions underlying the constructs being measured in this research. This research is significant because it supports the notion that HR digitalization has multiple dimensions of impact on organizations and reflects positively on the accomplishment of organizational performance. The significance of this study lies in its contribution to e-HRM literature by providing empirical validation of the main dimensions of HR digitalization.  Additionally, the research reinforces the value of HR digitalization in supporting organizational processes and enhancing management effectiveness.