Article Type : Research Article
Authors : Mukhtadi , Charda Ika Wijaya, Hendrik Heri Sandi and Putra Sang Fajar El Harry
Keywords : Digital technology; Human resource management; Global Era
The advancement of digital technology is an inevitability
that has an impact on human resource management patterns. This research is to
find out the benefits of digital technology to Human Resource Managers in
decision-making for the growth and development of organizations or companies.
Through qualitative methods researchers dig up data from various related
sources and disseminate questionnaires using Google Forms with links shared
through email messaging facilities and WhatsApp in a chain, to obtain
comprehensive information about the benefits of digital technology on Human
Resource Management strategies. Furthermore, data is processed, written, and
interpreted so that researchers can conclude about the impact of digital
technology on Human Resource Managers in decision making to win the competition
in the global era.
The rapid advancement of
science and technology has a significant effect on changes approached in all
aspects of human life. Unconsciously we have become citizens of the world,
without being limited by space and time, we can interact anytime anywhere, and with
anyone [1]. As stated Globalization is the acceleration of the relationship of
the world's citizens who associate events in one location with each other and
cause change [2]. Kita is entering a very interesting era, namely the Era of
Big Brother, the era of big retirement, the era of worshipers, the era of
openness where every interconnected activity can be monitored and even
predictable. , in addition to being profitable can also be detrimental,
depending on how to deal with it. Just has warned, "the higher the
technology, but also is not used with reason and great attitude (high tech low
touch) impact many parties are dragged and trapped in the artificial
world" [3]. The positive impact with the help of big data is, information
can be easily accessed, leaders, managers just analyse the available data to
help in decision making. The ability to analyse data becomes a very important
asset to determine the progress of an organization or company. Diera digital,
quality human resources are needed, because being the defining asset of the
success of the company Stiglitz Big data is an inevitability, has caused
dramatic and significant changes among organizations or companies [4]. Big data
is a large amount of data from a variety of structured and unstructured sources,
accessible to anyone with expertise, as a basis for strategic decision-making.
According to, big data is divided into two types of data, namely follows [5]:
·
Structural
Data is data that is very easy to categorize and analyse. It can be obtained on
sensor network devices on electronic devices, smartphones, and GPS. Includes
things like sales figures, account balances, and transaction data.
·
Unstructured
data is more complex data, for example, such as in customer opinions of goods
and services on a site, photos, multimedia devices, and social media, which
cannot be easily separated according to their categories or analysed
numerically.
The volume of big data is
very large, so the data processing process requires large storage and more
specific analysis. Human Resource practitioners are aware of the rapid growth
of big data. Die industry 4.0 with the Internet
of Things, plus systematic management and presentation methods will be very
helpful in making strategic decisions for the progress of the organization or
company. Superior Human Resources (HR) is the key to digital-based data
processing. Management that uses data analysis changes conventional ways to the
modern way According to, is collecting, storing, processing, summarizing,
reshaping, and providing data information on the internal business activities
of companies and competitors' businesses so that they are easily accessible and
Dianalisa for various management activities, this is often called business
intelligence (Bussiness Intelligence, BI)
[6]. The term BI is intended as a general term as an umbrella in data
analytics, reporting, data management, and presentation, on various
applications, infrastructure, materials, equipment, and as the best way for
organizations to get information, improvise. For data extraction needs, and
assisting in optimal organizational decision-making [7]. Digital transformation
is an inevitability, superior human resources are no longer just assets, but
have been transformed into the core of organizations or companies, HR expertise
in digital technology is a short-term and long-term investment for anyone who
wants to win the competition in the global era. Company leaders and Human
Resource (HR) practitioners should not be too late to execute decisions,
because everything goes so fast, decisions must be taken quickly, carefully,
and precisely. The role of Millennials as both subjects and objects has moved
the digital-based economy. Millennials have successfully pioneered and even led
digital-based businesses. Internet users are dominated by millennials. The
survey conducted by IDN Research Institute in collaboration with Alvara
Research Centre in 12 major cities in Indonesia was entitled Indonesia
Millennial Report 2019. As a result, Indonesian millennials have been connected
to the internet as much as 94.4%, even most of them have a dependence on the
internet. Based on data from the book Thematic Gender Statistics: Profiles of
Millennials, published by the Ministry of Women's Empowerment and Child
Protection with the Central Statistics Agency, shows that millennials born
between 1981-2000 88 million people, or 33.75% of the total population of
Indonesia. Strengthened by official data from the Kominfo 2021 E-commerce web
is growing rapidly, the number of internet users in Indonesia reaches 63
million people. In line with data from The World Economic Forum in 2015
Indonesia is predicted to 2020 will rank 8th in the world economy, so standard
chartered bank predicts the same? While Goldman Sachs's predictions are more
dramatic, Indonesia will become the world's number seven economic power after
China, the United States, India, Brazil, Mexico, and Russia. One of the
supporters of economic power is the activity of e-commerce, the mastery of
digital technology by millennials is believed to be the economic power of the
future,
Problem
formulation
Based on this
description, the formulation of this research is;
·
How
does Digital Technology affect an organization or company?
·
How
does the influence of mastery of Digital Technology by millennials affect the
business world?
Research
objectives
·
To
find out the influence of Big Data on organizations or companies
To find out the influence of mastery of Digital
Technology by millennials on the business world
Human
resource management
Diera digital superior
human resources become very strategic among existing resources (people, goods,
money, and information), humans are the most important resources to spur the
growth and development of organizations or companies. The goal of human
resource development is to optimize the quality of knowledge, skills, attitude,
and behaviour for the benefit of the organization or company [8,9]. This
statement emphasizes the quality of knowledge. Meanwhile, according to, human
resource management is a policy and exercise to meet the needs of organizations
and employees or aspects contained in human resources such as employee
procurement, registration, recruitment, screening, training, compensation, and
performance assessment [10]. This opinion emphasizes on management, for harmony
between the interests of employees and organizations or companies, empowerment
is needed as stated, and human resource management is an effort to empower
employees in the company [11]. Superior human resources will be able to analyse
data so that organizations or companies will quickly make decisions in the era
of global competition. In the opinion of, human resources (HR) is the
development and utilization of employees to achieve the goals and objectives of
individuals, organizations, communities, nations, and countries that are
efficient and effective [12]. Human Resources is concerned with humans working
to produce goods, services, or work efforts. You can be able to do all
economically valuable activities. According to, human resources (HR) is a
formal system in an organization to ensure the effective and efficient
utilization of human talents and potential to achieve organizational goals [3].
In "The Human Resources Glossary," from The Balance Careers defines
Human Resources as the people who occupy the staff and operate an organization
or company [13]. Human resources are one of the most dominant factors in an
organization or company compared to other factors. Human Resource Management is
a strategy for implementing management functions, namely planning, organizing,
leading, and controlling, in every activity or operational function of human
resources since the process of registration, selection, training and
development, placement, coaching which includes promotion, demoralization, and
transfer, performance assessment, compensation, welfare, security, industrial
relations, to the termination of work relations, which is intended for
improving quality of performance of human resources towards the achievement of
organizational goals more efficiently and effectively. This is in line with
mary Parker Follett's opinion, human resources (HR) is an art to achieve
organizational goals through arranging others to carry out various jobs needed
or in other words not to carry out the works themselves [14]. This opinion is
reinforced by who states that human resource management deals with all aspects
of how people work and are managed in organizations, including human resource
planning, performance management, learning, and human resource development.
This is human resource management is the planning, organization, direction, and
supervision of procurement, development, compensation, integration,
maintenance, and release of human resources to achieve various individual,
organizational, and community goals [15]. Therefore, human resources are needed
to be managed properly so that the effectiveness and efficiency of the
organization are increasing and optimal. In the future, human resources must
understand digital, superior human resources will not only become assets but
will be the core and the most important element compared to other elements.
Digital
technology
In the digital era of
euphoria, the democratization of information becomes an inevitability, this
becomes the focus of several studies on digital-based management. The leaders
of organizations or companies in decision-making are greatly helped by the
existence of digital technology. According to, through Big Data, information
can be easily obtained depending on how to utilize it. This opinion is clear
that Big Data is data that is too large to exceed the capacity process of
existing database systems and also too fast so it does not fit into dumbill's
existing database architecture structure [16]. Big Data was first introduced,
but actually, the use and need for data have been around for a long time
[17,18]. According to the characteristics of big data consist of three parts,
namely:
·
Volume,
big data has a large capacity so that in processing and managing requires large
storage media and specific and detailed analysis.
·
Velocity,
big data must have a process and a fast and real-time.
·
Variety,
big data must have diversity, be structured or unstructured, and must always be
sourced from data sources.
While the characteristics
of veracity (truth) and value (value) are related to the uncertain and useful
as a presenter of information from the resulting data. Big Data is high-volume,
high-speed, cost-effective information as an innovative form of information
processing that allows for increased insight and is used in Hilbert and Lopez's
decision-making [19]. Employee training (as part of business analysis) that
makes it possible to recognize the patterns of workers to produce changes to
Huselid organization. Many method options include the Agile Method, which is a
method in the development of software engineering, to anticipate the reduction
of change costs due to software gradually. When facing changes in developer
requirements by implementing agile methods, it will quickly adopt these new requirements
into the program carried out by Pressman [20,21]. Digital technologies that
replace previous technologies (mechanical and analog electronics). Being a
megatrend, this is the concern of the study of communication and digital.
Domination of information centre mastery; especially conventional mass media
(mainstream) is reflected by the emergence of e-government into the flow of
information so quickly and cannot be limited by space and time, anyone can
access information, as stated by Lon Safko, that in the era of Digital anyone
can be a producer and comment on Safko information [22]. Optimization of Big
Data hrm managers will be greatly helped to get actual data and information,
obtained through artificial intelligence or Artificial Intelligence (AI) such
as, in monitoring the performance of employees and providing feedback or
feedback between colleagues or requesting evaluations from their superiors. The
answer is in the era of global competition, mastery of technology becomes the
main key, superior human resources are not only assets but the most important
core in addition to other elements in the organization or company. To be able
to read, analyze and optimize the benefits of Big Data to help make
decision-making easier. In the face of and winning the global competition.
Millennial
generation
The definition of
generation according to referred to as generation is a group of individuals
based on the similarity of age, year of birth, and time experienced together in
a life that has a significant influence on their growth phase [23]. The notion
of generational difference was popularized by Neil Howe and William Strauss in
1991. Disbursed generations based on the period of birth and the similarity of
historical events. The generation born in 1982 until the turn of the millennium
or in 2000 [24]. Grouped as Millennials or Generation Y, this generation is
marked familiar with instant communication technology such as Mobile Phones,
WA, SMS, email, instant messaging, and friendship media such as Facebook, Twitter,
Instagram, although the definition of the birth year is still debated. The
Australian Bureau of Statistics classifies generation Y births between 1983 and
2000, as prevalent in the UK and US, a reference between the 1980s and 1990s.
This generation was labelled as the N-gene after the Net and the information
revolution [25]. This grouping difference, simply because of historical
location and event differences, geographical locations are debated in
generation groupings, according because conceptualization of groupings is often
based on historical events in the United States, there needs to be a
generalization agreement of generation grouping that is acceptable in all
places, in general [22]. Based on official data from the Kominfo 2021 web
millennial generation as a trigger for business digitization, E-commerce is
growing rapidly along with public adoption of internet technology. Almost the
entire order of life is inseparable with the help of digital technology.
Millennials are familiar with instant communication technologies such as email,
SMS, instant messaging, and others, because millennials grew up in the internet
boom [26]. They are very responsive to changes in technology or gadgets,
"experiencing various revolutions in technology, starting with computers,
information, and then the internet." they have their characteristics, ways
of thinking, behaving, and making decisions more logically, practically, and
professionally, they can access knowledge from many sources including from the
internet not only from the bench. A survey conducted by IDN Research Institute
in collaboration with Alvara Research Center in 12 major cities in Indonesia
entitled Indonesia Millennial Report 2019 showed that Indonesian millennials
have been connected to the internet as much as 94.4%, even most of them have
experienced internet dependence.
Previous
Research
Research conducted [27]. From Essex Business
School, the University of Essex under the title Big D and Human Resources
Management: the results of big data can offer several opportunities to HR
practitioners. In a survey conducted, only 15% of respondents claimed candidate
analysis played a key role in their organization. Similar results were provided
although other reports highlight that in some industries the use of Candidate
Analysis is very common due to the availability of data [28,29]. With the title
Information systems and the potential benefits of big data for education, the
result is on the analysis of available big data and the technology needed to
manage it to produce information useful to humans. This information is
necessary to make important decisions or policies that will in turn affect
human life later. In doing so the data has become information. That information
will be transformed into knowledge that can be applied in everyday human life.
Referring to the results of the study, clearly show the importance of Big Data,
so in this study, to reveal whether organizations, companies should migrate to
big data, and how millennials contribute to the migration.
This research uses
Creswell's qualitative method, often referred to as methodology based on events
that occur in the field, the processes and meanings studied are highlighted to
provide a research overview of technology-based Human Resource strategies with
the foundation of existing theories [30]. The foundation of this theory is also
useful in providing a discussion of research results so that researchers can
compile themselves by providing discussions about the management of Human
Resource strategies based on digital technology. Researchers dig from various
sources on the use of digital technology for organizations or companies
Researchers do not conduct interviews specifically, only through observation
and study of documents, and disseminate questionnaires to explore millennials'
interest in digital technology. Based on the data obtained by researchers
complete a process, analyze inferring, and pour it into a piece of writing.
Results
The rapid and rapid
development of digital technology affects organizations or companies.
Consequently, corporate organizations began to use Big Data Analytics and
Artificial Intelligence techniques as a means to determine business strategies
and improve the productivity and efficiency of Human Resources. Changes in data
management from conventional to modern through big data can improve efficiency
and help identify business opportunities such as unspoiled consumer segments.
Thus, the potential for growth and profitability becomes an inevitability. Data
analytics helps companies see changes in customer needs patterns and provides a
clear picture of what to do, production, consumer services, or shortages among
employees and others. Transformation of understanding of HUMAN RESOURCES (Human
Resources) which was previously classified as a factor of production and then
the company's assets based on the results of this research has received
respectable recognition that is as an integral and core part of an organization
or company, then superior human resources is an investment that will be
profitable for anyone. Abundant resources, open opportunities, if you do not
have superior human resources then everything becomes meaningless because those
who can analyse data and use it to win the global competition are only superior
human resources, so it is not excessive in the era of rapid advancement of
digital technology HR is the core of the organization or company, then the most
exciting long-term investment is an investment in the field of knowledge. The
results of the survey were conducted by Researchers using Google Forms and
links shared through email messaging facilities and whats Aap in a chain. This
survey was conducted to see how millennials view, regarding millennials'
understanding of digital technology. The survey asked two things: "First
year of birth to make sure respondents are millennials. Second Understanding of
digital technology, the results of the survey are as follows [31-33];
The
year of god
Survey questions about
when the year of birth, with 2 answer options, namely birth before 1980 and
after 1980, with parameters before and after 1980 to facilitate the
classification of respondents' answers. Although some answered the year of
birth specifically, after being grouped into 2 groups, namely births before and
after 1980, this is to map that the respondents represented the millennial
generation and the old generation. Of the 148 respondents who entered obtained
results as figured.
The answers from
respondents who obtained birth data after 1980 amounted to 98.9% and the
remaining births before 1980 amounted to 1.1%, meaning that the target of this
study is that millennial generals were fulfilled because the respondents were
98.9% millennials.
Furthermore, it is
related to an understanding of digital technology [34,35].
Understanding
of digital technology
Millennials'
understanding of digital technology, based on surveys with a choice of answers:
understand, lack of understanding, do not understand. Can be obtained answers
as figured.
The answers from
respondents obtained the following data; understand= 92.%. Lack of
understanding 7% do not understand = 1% of the data is significant with the
millennial generation, meaning that millennials, in general, understand digital
technology. Broadly speaking, it can be known that millennials understand and
are familiar with technology, this will affect their mind set in thinking,
acting, and acting, which is based on data analysis in decision making. Digital
transformation is an inevitability, HR expertise in digital technology is a
short-term and long-term investment for anyone who wants to win in global
competition. Company leaders and Human Resource (HR) practitioners should not
be too late to execute decisions, because everything goes so fast, decisions
must be taken quickly, carefully, and precisely.
Statistical
data
Based on data from the
book Thematic Gender Statistics: Profile of Millennials, Ministry of Women
Empowerment and Child Protection with the Central Statistics Agency, the number
of millennials born between 1981-2000 amounted to 88 million people or 33.75%
of the total population of Indonesia. Compared to the number of other
generations, currently, the percentage of millennials in Indonesia is the
largest number (33.25%), followed by the number of generation Z (29.23%),
generation X (25.34%), and the least is the generation of baby boomers and
veterans (11.27%), the number of millennials dominates the demographics, this
is a challenge and opportunity for the Indonesian nation, they will determine
the future of Indonesia. For this reason, all parties, communities,
governments, private sectors, and business leaders must anticipate adapting,
competing, and winning the competition and sustainability in the global era.
Extermination
·
Based
on the formulation of the problem, namely; how does digital technology affect
organizations or companies?
Digital-based Human
Resource Management is an inevitability of the development of science and
technology. In the era of digital technology, almost all activities can be
helped by technology including in the field of human resource management. Human
Resource managers can utilize technology in every activity. One of them is by
utilizing Big Data, and the existing technology system will greatly help the
leaders of organizations or companies in the management of human resources.
Millennials are very understanding and familiar with the digital world, this
will affect their mind set in behaviour and action, which is based on data analysis
in decision making. Digital transformation is an inevitability, HR expertise in
digital technology is a short-term and long-term investment for anyone who
wants to win the competition and be sustainable in the global era. Company
leaders and Human Resource (HR) practitioners should not be too late to execute
decisions, because everything goes so fast, decisions must be taken quickly,
carefully, and precisely with the help of digital technology.
Conclusion
·
Organizations
or companies must respond, annotate to the rapid development of digital
technology, adapt, compete and win the competition, and be sustainable in the
global era.
·
The
change in data management from conventional to modern means through Big Data
greatly helps Human Resource leaders in making decisions and various needs for
the progress of organizations or companies.
·
Millennials
who are familiar with digital technology act as subjects and objects for the
digital technology-based economy.
·
Superior
Human Resources (HR) is no longer just an asset of the company but has become
the core of the company that can determine the progress of the organization or
company.
·
Organizational
leaders or companies must quickly adapt to that competition today in the
digital age, so they must immediately migrate from a conventional way to a
digital way.
Suggestion
·
Organizational
and Corporate Leaders must transform and adapt to the advancement of digital
technology
·
Organizations
or companies must build big data to facilitate the management and utilization
of data.
·
Millennials
must be given more roles to be able to implement and develop their potential,
especially those related to digital technology.
·
It
must be a common awareness that Superior Human Resources is a short-term and long-term
investment because it is no longer an asset but the core of the organization or
company.
·
All
the cuttings immediately changed the mind that the current era is the digital
era