Advances in the development of information and communication technologies are transforming business practices and creating opportunities for new types of entrepreneurial activities.
Information and communication technologies have been transforming the way businesses and organizations run operations and functions. With the emergence of new entrepreneurial activities, these technologies have been increasing the number of opportunities for organizations. Although the impact of these technologies is there on the whole organization, they affect each function of an organization. Therefore, it is useful to study the effect of these technologies on each function of an organization. These technologies are called digital technologies, and this paper explains these technologies. Among digital technologies, artificial intelligence and the Internet of Things are prominent. This paper takes the human resource function of an organization and explains the impact of these two digital technologies over the function.
Explanation of Digital Technologies
Digital technologies consist of electronic equipment and applications that are used for application in the operations and functions of an organization. These technologies interpret and use information electronically using numeric code. As a result, the speed of processing increases so much that it enables an organization to do many things in no time. The overwhelming use of technology under digital technologies sometimes makes no need for human involvement. It happens in the case of artificial intelligence and the Internet of Things, where human involvement is only at assisting level. As a daily example, personal computers, communication satellites, and high-definition electronic equipment use these technologies. But advances have gone many steps further, and artificial intelligence and the Internet of Things have revolutionized the way businesses conduct their functions (Thorun & Diels, 2020).
Artificial Intelligence (AI)
Artificial intelligence is a human-like intelligence that resembles the way human beings work. However, it is part of many digital technologies; therefore, it is called artificial. It is human-like because it can learn, plan, implement, perceive, reason, and process like human beings (Vamplew, Dazeley, Foale, Firmin, & Mummery, 2018).
Internet of Things (IoT)
First, it is useful to have an idea of IoT because the next section explains its impact on the human resource function of an organization. Simply, IoT is a network that is connected and integrated enough allowing many physical devices to use and exchange data and information with each other. These physical devices and appliances are embedded with sensors, software, electronics, and different gadgets. Recently, a new term has emerged that is “Intelligence of Things” that combines artificial intelligence with IoT.
Impact of AI on Human Resource function of an organization
Given the nature and characteristics of artificial intelligence, the human resource function of an organization is no exception. The impact of AI on human resources is in four ways, at least. First, the human resource function would be highly personalized and customized through AI. Scheduling would be done through machines because the AI would make it possible. It would increase candidate and employee engagement by sending auto messages to everyone in the organization. Most importantly, AI can predict future trends in the human resource function of an organization. A business can know about future turnover and satisfaction levels of employees well before it happens (Tursunbayeva, 2019).
The above-noted impacts are not simple because they would revolutionize the way human resources works traditionally. The use of AI does not resemble the use of computer or information technology in HR because such application of technology is limited in use and application. Any organization cannot afford customized and personalized training sessions for employees, and it may not respond to applicants individually. AI can do this that would increase the productivity of employees and promote the engagement of applicants with the organization. Scheduling is an essential task that can be handed over to AI because it can follow the schedule given. Performance reviews and appraisals are functioning those AI can perform effectively. With instant response to employees and addressing their concerns, employee and candidate engagement may get a boost through AI. From the organization’s perspective, the prediction ability of AI regarding employee turnover and training needs is tremendous that hand over plenty of opportunities to act for the organization (Meskó, Hetényi, & Győrffy, 2018).
Impact of IoT on the Human Resource function of an organization
The definition of IoT suggests how it would affect the human resource function in an organization. It is a network that connects various devices and people working over these devices. Therefore, this digital technology would bring people closer to each other. Therefore, human resource function would get many benefits from it. People analytics through IoT would increase the efficiency and effectiveness of functions at HR. IoT calls for employees to carry internet-enabled wireless devices and gadgets that would improve the collaboration and experience of employees. The network of IoT can also promote work flexibility because working from remote areas can also work for employees. In this regard, tracking of employees may also be possible (Jeyanthi, 2018).
However, it may raise issues with human resources because they may take it as a burden of being monitored and connected every time. This digital technology would give extra control in the hands of organizations that can monitor and oversee the employees’ actions and activities continuously. Therefore, it is better to use the technology with care and for the wellness of the HR function and human resources. It is no doubt that despite these concerns, IoT is going to transform the way HR works in an organization. Therefore, its impact would be strategic and long term. Here, it is better to refer to the intelligence of things that combines AI in IoT. Therefore, in the future, HR functions would transform through the combined role of AI and IoT (Giudice, 2016).
Conclusion
It is concluded that digital technologies are revolutionizing ways and trends in business. Entrepreneurial activities are changing because these technologies are empowering people working in an organization. Organizations and employers are getting equipped with powers and options that make them independent to make decisions. These changes are going to impact on the HR function directly, and decision-making is going to be in the hands of machines. These machines are human-like in their actions and performance. Thus, trends in all functions of an organization are going to change, including the HR function.
Chose an organization you are familiar with, study its culture, then make assessment on how organizational culture can influence innovation capabilities and competitiveness (you can use an organizations such as: Apple, Google, McDonald’s, Samsung,….)
Google, its Culture, and Influence on Innovation Capabilities and Competitiveness
Google Inc is one of the most innovative companies in the world. Its unprecedented growth in recent years since its inception is due to its unique organizational culture. Its corporate culture allows its employees to collaborate and cooperate warmly and effectively. Several big names and platforms are linked with Google, and it has set high ideals for even its competitors. It is the reason why the company is excellent in terms of its innovation capabilities and competitiveness. It would be interesting to study organizational culture with this perspective of contributing to innovation capabilities and competitiveness.
Organizational Culture of Google Inc
The organizational culture of Google allows employees to do what they like to do. This openness and freedom open the door for new ideas and solutions. The company ensures not to model this openness in the form of a robust or complex system that may become a burden for employees. For instance, it could have used training to increase the level of innovation and creativity among its employees. Instead, the company has integrated coordination and cooperation in the company’s culture. Google Cafes and Google Moderator are examples of this approach of Google.
It is interesting to know about these two steps or decisions from the company. The company has used Google Cafes with strategic intent as their design encourages employees to interact with each other. This collaboration is not meaningless because a highly talented workforce loves sharing ideas with each other. It has ingrained in the company’s culture to enhance knowledge and idea generation capacity. Similarly, the company Google Moderator further enhances the communication ability of employees. During any tech-talk or company-wide meeting at Google, it is allowed for everyone to ask a question. Employees can rate an asked question up that sends the message to the company about popular trends. It helps to inform the company about current trends and suggestions among employees. These two initiatives are other than the 20 percent project (Stevenson, 2020).
Google has a 20 percent project initiative that gives engineers the freedom to spend 20 percent of their time weekly on their desired work. They then choose their exciting work, and it gives them plenty of room for experimentation. They can commit mistakes, and failure is not a threat to this process. As a result, a successful experiment provides the company with an innovative idea or a concept. It leads to the development of new products and services for the company. The company can also know about the expertise and capabilities of its employees through the 20 percent projects (Stevenson, 2020).
The above characteristics of Google’s organizational culture reveal openness and innovation are deeply rooted in the company. Smart work and a hands-on approach are other attributes of corporate culture there. These attributes make it possible for employees to be alert and proactive in solving problems. They also think of new ideas. The fundamental characteristic of the organizational culture is visible through healthy and warm interaction among employees that is expressed through small-company-family rapport. It is similar to Google Cafes and Google Moderator by the company because it is aimed at encouraging collaboration across the organization (Schneider, 2018).
Assessment based on Organizational Culture
The above discussion on the culture of Google reveals the secrets of the company’s success. Under the head of assessment, the impact of the culture has been assessed on innovation capabilities and competitiveness. In the following, the assessment regarding these aspects has been presented.
Influence of Organizational Culture on Innovation Capabilities
Research suggests that innovation comes with openness and autonomy at the individual level. Companies have been facing a strict business environment where competitors are exerting continuous pressure to succeed in the industry (Burcharth, Knudsen, & Søndergaard, 2017). Therefore, the company has to ensure its innovation capabilities so that they can remain successful in their field. Google is no doubt a hub of innovation because it has many products and services on its credit. The majority of people know it through Google search engine and platforms like YouTube. However, it has been innovating new products as well. It also has an operating system, thermostat, robot assistants, cloud storage and computing systems, and self-driving cars. These innovations have been possible because the company has allowed its employees to be independent. It does not mean that the company allows each employee to innovate a new product. Instead, it provides knowledge sharing and expertise in building collaboratively. As a result, the company has been increasing its innovation abilities with each passing year. Many innovations by the company’s employees are the result of the 20 percent project as they follow their interests and end at innovations (Carlson, 2014).
Influence of Organizational Culture on Competitiveness
The Google culture, with its characteristics of openness and cooperation, results in the competitiveness of Google. Google is a market leader in the search engine, Smartphone operating system, and other products. Cloud storage and computing systems of the company have unmatchable attributes. The company has developed a range of innovative products that make a unique case of the differentiated product line. Each product is innovative and has a loyal customer base. Competitors cannot imagine having such a robust and innovative product line. Many companies are competitors of Google, but they target some of its products. It is going to be difficult for them to compete with the whole company. Companies like Microsoft and Apple are known in the industry, and they have maintained their competitiveness as well. However, they are not differentiated and diversified like Google. It is all due to the culture present in Google. It is the result of the contributions of every individual to the company, and no company cannot match such culture (Santos, Bronzo, de Oliveira, & de Resende, 2014).
Conclusion
It can be summarized as innovation capabilities and competitiveness are stages or destinations for companies. Every company wants to achieve it. They accumulate funds and adopt new technology to achieve them. However, they may ignore an important element, that is the culture of the organization. This paper has explained the culture of Google. It has shown how it has been helping the company to be successful and sustainable in the industry. The paper recommends focusing on culture to be competitive and innovative.
References
Giudice, M. D. (2016). Discovering the Internet of Things (IoT) within the business process management. Business Process Management Journal, 22(2), 263-270.
Jeyanthi, P. M. (2018). INDUSTRY 4.0: The combination of the Internet of Things (IoT) and the Internet of People (IoP). Journal of Contemporary Research in Management, 13(4), 29-39.
Meskó, B., Hetényi, G., & Győrffy, Z. (2018). Will artificial intelligence solve the human resource crisis in healthcare? BMC Health Services Research, 18.
Thorun, C., & Diels, J. (2020). Consumer Protection Technologies: An Investigation into the Potentials of New Digital Technologies for Consumer Policy. Journal of Consumer Policy, 43(1), 177-191.
Tursunbayeva, A. (2019). Human resource technology disruptions and their implications for human resources management in healthcare organizations. BMC Health Services Research, 19(268), 1-8.
Vamplew, P., Dazeley, R., Foale, C., Firmin, S., & Mummery, J. (2018). Human-aligned artificial intelligence is a multiobjective problem. Ethics and Information Technology, 20(1), 27-40.
Burcharth, A., Knudsen, M. P., & Søndergaard, H. A. (2017). The role of employee autonomy for open innovation performance. Business Process Management Journal, 23(6), 1245-1269.
Carlson, N. (2014). A List Of Products Larry Page Has Google Working On Other Than Search, Such As Spoons.
Santos, N. d., Bronzo, M., de Oliveira, M. P., & de Resende, P. T. (2014). The relationship between Organizational Culture, Organizational Structure and Human Resource Management as Bases for Business Process Orientation and their Impacts on Organizational Performanceculture, organisational climate and managerial values. Brazilian Business Review, English ed., 11(3), 100-122.
Schneider, M. (2018). How Google Built a Culture That Inspires New Ideas Every Day.
Stevenson, M. (2020). Innovative Culture Challenges.
