Abstract
As the world moves deeper into the fourth industrial revolution, organizations around the world are polarizing towards the transformation and adoption of the advanced technologies of Industry 4.0. However, recent studies suggest that organizations struggle and face several managerial challenges in their implementation. As a consequence, many studies examined the potential factors that can influence Industry 4.0 implementation. Based on a systematic literature review, this study has tried to explore, examine, and synthesize the potential human resource (HR) success factors and develop an efficient Industry 4.0 HR framework that can play a vital role in Industry 4.0 implementation. This study would also build a solid foundation for practitioners, academicians, and researchers to get a better understanding of the impact of Industry 4.0 on HR management.
Keywords
Introduction
As fourth industrial revolution unfolds, driverless cars, self-driving forklifts, screws communicating with robots, and smart machines coordinating the production processes have become a reality. Organizations today are making supreme efforts to harness the advanced technologies to develop new and efficient processes, products, and services by blending the physical and digital realms of the world (World Economic Forum, 2016). These emerging technologies which rely heavily on automation, digitalization, and real-time information exchange include cyber-physical systems, internet of things (Kagermann et al., 2013), robotics, big data analysis, artificial intelligence (AI), augmented reality (AR) and virtual reality (VR), three-dimensional printers, cloud computing, etc (Irudayaraj, 2017; Kagermann et al., 2013; Lasi et al., 2014; Thoben et al., 2017).
The fact that Industry 4.0 requires a large number of processes to be altered and replaced by new ones in the manufacturing environments, structural transformations are expected in the global economy (AIMA-KPMG, 2018; Lorenz et al., 2015). Developed countries like Germany, United States, China, and Japan have already initiated the transformation and are formulating national strategies and policies for development (BRICS, 2016; Dhanpat et al., 2020; Kazancoglu and Ozkan-Ozen, 2018). An increasing number of developing countries like India and Indonesia to reap benefits and compete with developed countries are also polarizing towards Industry 4.0 by making comprehensive changes throughout the organizations (Irudayaraj, 2017). Even various small and medium-sized enterprises (SMEs) around the globe are in the process of initiating digitalization and automation to survive in the globalized environment (Cimini et al., 2020; Nwaiwu et al., 2020).
Industry 4.0 has also become a burgeoning topic for researchers. The academic contributions on the subject have dramatically increased in the last few years. The existing literature has interpreted Industry 4.0 from different perspectives such as sectors (Oesterreich and Teuteberg, 2016), organizations (Bokrantz et al., 2020; Li et al., 2019), and areas (Jerman et al., 2020; Liboni et al., 2019).
While the existing contributions offer valuable insights, they largely focus on studying the complex nature of Industry 4.0 and the technical and manufacturing aspects. The limited management literature reveals that organizations struggle and face diverse managerial challenges (Cimini et al., 2020; Horvath and Szabo, 2019; Liboni et al., 2019; Schneider, 2018) in the transition process and sometimes even hesitate to implement Industry 4.0 (Horvath and Szabo, 2019). Some of the major challenges highlighted in the extant literature are lack of top management support (Sony and Naik, 2020), internal knowledge and skills gap (Cimini et al., 2020), availability of experts (Sony and Naik, 2020), organizational structure (Cimini et al., 2020; Li et al., 2020), leadership style (Schneider, 2018; Shamim et al., 2017), human resources (HRs) (Liboni et al., 2019; Schneider, 2018; Shaw and Varghese, 2018), data security (Kazancoglu and Ozkan-Ozen, 2018), and financial support (Horvath and Szabo, 2019).
One of the critical Industry 4.0 concerns is the effect that transformation will have on human resource management (HRM; Bajpai et al., 2019; BRICS, 2016). The advancement of digital technology and increase in automation will mean the replacement of traditionally manpower-operated processes by machines (Liboni et al., 2019). New skills and capabilities that will realistically be required in the future will need to be identified. The current employees will need to be upskilled and retrained. New talent will be required to be attracted, retained, and integrated into the business (Fareri et al., 2020).
Comprehensively, business leaders will need to focus on fronts such as effective HR management by developing new ways of working, building the next-gen workforce, fostering an organizational climate, a culture of lifelong learning (Mohelska and Sokolova, 2018), and shape innovative strategies for the future that can directly contribute to the business strategic objectives and successful implementation of Industry 4.0 (Lorenz et al., 2015; Verma et al., 2020). The findings on the numerous HR factors that potentially influence the implementation of Industry 4.0 exhibit the key role of HRM in Industry 4.0 implementation (Cimini et al., 2020; Fareri et al., 2020; Kazancoglu and Ozkan-Ozen, 2018; Llinas and Abad, 2019; Mohelska and Sokolova, 2018).
This study, therefore, sets out to present a comprehensive picture of HR success factors through a systematic review of the literature and develop an HR framework that could build a solid foundation for future research and provide orientation for practitioners and institutions to help get a better understanding of the impact of Industry 4.0 on HRM.
This article is structured as follows after the general introduction, and the second section consists of a literature review. The third section describes the methodological approach. The fourth section discusses the findings and analysis. The fifth section presents the discussion, implications, and conclusion and finally, the sixth section includes the limitations of the study.
Literature review
Stages of industrial revolution
The industrialization phenomenon has seen four great paradigm shifts since its iteration. These paradigm shifts are characterized and influenced by different technological advancements called the “industrial revolutions” (Miragliotta et al., 2018). The first industrial revolution in the late 18th century replaced animals with machines and introduced mechanical manufacturing processes (Habanik et al., 2019). Water and steam-powered machines were used for the mass production of goods (Thoben et al., 2017). In the late 19th century, came the second industrial revolution where electrical energy was used to run the machines. These machines were more efficient to operate, were less costly, and required less maintenance and effort, unlike the machines used in the first industrial revolution. Mass production of goods was streamlined using an assembly line (Thoben et al., 2017). The third industrial revolution was introduced in the early 1970s; the entire manufacturing industry was automated with the advances in electronics, computers, and IT (Kagermann et al., 2013; Thoben et al., 2017). The invention of electronic devices such as transistors and integrated circuits and software systems reduced the efforts and increased speed and accuracy. The 21st century led to the boom in the Internet and telecommunication technologies and brought major paradigm changes in the manufacturing processes. This revolution merged the boundaries of the physical and the virtual world and was called the fourth industrial revolution or Industry 4.0. The technological disruptions in this revolution allow man and machine to communicate in real time with no physical or geographical barriers (Jerman et al., 2020). It revolutionizes the management of logistics, production control, scheduling, quality control, and capacity utilization. The invention of smart technologies helps continuously monitor, detect, and predict faults and suggests preventive measures and remedial action.
Industry 4.0
The term “Industry 4.0” was initially coined in 2011 at the Hanover Fair. Later, in 2013, the German Government adopted it as a strategic initiative to transform and restructure the manufacturing industry (Nwaiwu et al., 2020). Lately, Industry 4.0 has gained increasing attention due to its diverse benefits to organizations. Several authors have given varied definitions of Industry 4.0 but most have defined it in a technocentric perspective, with technological advancements as the main trait. Kagermann et al. (2013) described Industry 4.0 as the integration of network resources, information, objects, and people in the realm of manufacturing. Oesterreich and Teuteberg (2016) defined Industry 4.0 or the fourth industrial revolution as increased automation, digitization, and interactions enabled by the creation of a digital value chain in a manufacturing environment. Szalavetz (2019) defined it as an umbrella term comprising a variety of digital enterprise technologies. According to Schwab (2016), the fourth industrial revolution (or Industry 4.0) is characterized by diverse technologies that blend the physical, digital, and biological spheres impacting all disciplines, industries, and economies. United Nations Industrial Development Organization (2017) has described Industry 4.0 by relating technologies with human body parts. Automation and robotics, the key components, are considered the arms and legs of Industry 4.0; cameras and other sensors are the senses; data and connectivity as the nervous system; and AI is perceived as the brain of Industry 4.0.
Industry 4.0 has put the man, machine, processes, and infrastructure in a single loop leading to the highly efficient management of manufacturing processes (Miragliotta et al., 2018). It allows the organizations to be digitally interconnected with customers, suppliers, and the external environment and managed through SMART processes, network buildings, logistics, and products (Schneider, 2018). Though Industry 4.0 is still at its nascent stage and the industries are still in the transition phase of the adoption of the new technological systems, the future of Industry 4.0 seems flickering (Bag and Pretorius, 2020; Grant Thornton, 2017).
Industry 4.0 and HRM
To harness the transformative potential of Industry 4.0 business leaders across all nations and industries need to proactively plan and formulate comprehensive strategies to meet the challenges of the new era of accelerating change and innovation. CEOs are turning increasingly to the HRs professionals to drive technology absorption, foster innovation, and attract, retain, and develop the workforce of the future. By managing the workforce implications of Industry 4.0, HR leaders play a crucial role in ensuring that organizations can successfully adopt and deploy new and emerging technologies.
To facilitate Industry 4.0, the HR leaders need to become even more creative and strategic as more routine and administrative HR tasks will go away due to automation (Liboni et al., 2019). HR functions such as recruitment, training, and development will undergo massive transformations (Shaw and Varghese, 2018). According to the World Economic Forum (2018) report, human labor hours will decrease from 71% to 58% by 2025. More than 50% of all employees will require necessary reskilling by 2022. The challenges are significant. Therefore, HR professionals need to step up their game.
The existing literature has also recognized the role of HRM in Industry 4.0 implementation (Cimini et al., 2020; Fareri et al., 2020; Kiatsuranon and Suwunnamek, 2017; Li et al., 2020; Liboni et al., 2019; Mahdiraji et al., 2020). Authors suggest that HR strategies represent a key to take advantage of the opportunities of Industry 4.0 and help mitigate the attached challenges, make organizations future-ready, and adapt to the demands of the big revolution (Fareri et al., 2020; Nwaiwu et al., 2020; Park and Huh, 2018; Shaw and Varghese, 2018).
Taking into account the significance of HRM and the unprecedented potential of HRs, this study has tried to demystify and synthesize the HR approaches and success factors mentioned in the literature and develop an HR framework that can help businesses successfully navigate Industry 4.0.
Research methodology
Research approach
Literature shows that Industry 4.0 is a cross-cutting theme and several aspects of Industry 4.0 have already been studied. The technical aspects among all enjoy greater detail in the literature (Liao et al., 2017; Schneider, 2018; Shamim et al., 2017). A growing number of studies have started focusing on another important aspect, that is, implementation of Industry 4.0 (Calzavara et al., 2020; Kazancoglu and Ozkan-Ozen, 2018; Li et al., 2019). Still, much clarity is needed to build a solid bedrock for practitioners, scientists, and the Government to formulate effective strategies and policies for Industry 4.0 implementation. In light of this, a systematic literature review offers the necessary toolkit by providing a clear view of the overall problems and solutions identified in the literature. Although several studies have applied the systematic literature review methodology in the context of Industry 4.0, no study has explored the HRM success factors in a systematic manner that are important in the context of implementing it.
The methodology of systematic literature review helps practitioners to study the literature by summarizing large studies and explain the differences among them (Cook et al., 1997; Wolf et al., 2001). Over recent years, new systematic review methods have been developed to select, summarize, and report evidence (Denyer and Tranfield, 2009; Tranfield et al., 2003). It enables the analysis of the past studies and uncovers the body of literature that is relevant to a specific subject (Kitchenham, 2004). Systematic reviews require documentation of all steps of data extraction containing all general information, such as title, author, publication details, as well as the research-specific information, such as methods, gaps, and opportunities for future research (Tranfield et al., 2003). For these reasons, the same method was chosen as the research methodology for the present article. It maintains the same principles and applies the three main steps of planning, execution, and reporting suggested by Tranfield et al. (2003).
Data collection
The first phase of data collection involved identifying and extracting articles following a rigorous preestablished scheme from the scientific database Scopus-Elsevier, the database is selected because of its importance for the contributions of many international scientific publications that can be useful to perform the systematic literature review. The keywords used for article searching were Industry 4.0 and Human Resource Management; Industry 4.0 and Smart Human Resource Management; and Industry 4.0 and HR 4.0.
Data screening
The first search with keywords resulted in 349 publications. The inclusion and exclusion criteria listed below were then applied to screen publications, which resulted in 110 publications.
Inclusion criteria
Studies published between 2010 and 2020.
Publication language is English.
Publication type is an article.
Publications in Journals only.
Studies that are directly related to Industry 4.0 and HRM.
Exclusion criteria
Conference proceedings, monographs, book chapters, book reviews, theses, and project reports were excluded as refereed journal articles represent state-of-the-art research output with high impact (Chan and Ngai, 2011; Podsakoff et al., 2005).
Duplicate entries in the search output.
Publications where only abstract was available.
Articles not specifically related to HRM but Industry 4.0 in general.
Quality assessment of the reviewed literature is supremely important to a systematic literature review as the quality of conclusions entirely depends on the quality of selected literature (Yang, et al., 2021). Therefore, 110 full-text articles shortlisted from the initial search were thoroughly skimmed to evaluate the quality and eligibility of the articles. Only high-quality journal articles by reputable publishers with well-cited references were included in the review. The set was supplemented with additional five studies that were repeatedly found in the references list of selected articles. The final sample resulted in 39 articles. A memorandum with brief records of the aims and findings of each article was created for analysis in a Microsoft Excel spreadsheet. The study was completely funded by the Institution.
The preferred reporting items for systematic review and meta-analysis protocols flowchart that reports the different phases of this systematic literature review is shown in Figure 1 (adopted from Moher et al. (2009)).

Systematic literature review procedure.
Descriptive analysis
Number of publications per year
This section shows the descriptive analysis of the articles. The timeline distribution of the articles analyzed is presented in Figure 2. Industry 4.0 and HRM perspective became a topic of interest only after 2017 as seen in the figure, with maximum studies done in the past 2 years. This depicts the accelerating interest in the topic among the researchers. Data of 2020 are still incomplete as this research was carried out in the middle of the year.
Descriptions of articles selected for the review are available in Appendix 1. It presents details about the authors and the title of the article.

Number of publications per year.
Country-wise analysis of articles
The country-wise analysis of articles is conducted in Figure 3. It is depicted that most of the research articles came from Italy, followed by Germany (where Industry 4.0 originated; Lasi et al., 2014), UK, Czech Republic, and Sweden. However, it should also be inferred that even small countries such as Namibia and Bangladesh are ushering in research on Industry 4.0 depicting the growing importance of this topic.

Country-wise analysis of articles.
The approach of the study
The approach of the studies was analyzed based on conceptual and empirical research. Figure 4 shows that most studies were empirical (72%) rather than conceptual (28%). This describes a need for more conceptual research in this area.

Approach of the study.
Method of research
This category aims to investigate the methods used in the reviewed articles: qualitative or quantitative. Figure 5 depicts a somewhat equal proportion of methods used with 51% quantitative researches and 49% qualitative researches. This result may represent research opportunities for both methods in the future.

Method of research.
Techniques of research
This category aims to verify the research techniques used in the analyzed articles. Figure 6 shows that more than 33% of the articles used questionnaires as the main method followed by literature review (26%), interviews (23%), and case study (18%). It is relevant to highlight that there were no studies using focus groups, simulation, programming, or other different techniques.

Techniques of research.
Findings and analysis
Several studies highlight that in the Industry 4.0 manufacturing ecosystem, it becomes imperative to prepare the workforce and conduct strategic workforce planning aligned with organizational goals and policies (Liboni et al., 2019), build strategies for hiring skilled resources for new job roles, and upgrade existing roles to the new methodologies with a greater focus on compliance, regulatory, and security aspects. HR strategies formulation and implementation will have a significant impact on Industry 4.0 implementation. This section, therefore, presents a comprehensive review of the HR success factors and a framework that can help in the successful implementation of Industry 4.0.
HR success factors
These are the critical HR factors for success that have been identified from the literature.
Job design
Several authors in the literature highlighted that the digitalization and automation in the fourth industrial revolution will lead to new jobs carving and dejobbing in the organizations as robots and mechanical arms will shift the low-skilled redundant jobs towards more high-skilled complex jobs (Benesova and Tupa, 2017; Fareri et al., 2020; Grencikova and Vojtovic, 2017; Kazancoglu and Ozkan-Ozen, 2018; Liboni et al., 2019; Pejic-Bach et al., 2020; Schneider, 2018; Shaw and Varghese, 2018; Sony and Naik, 2020). There is also a consensus that there will be a lot of dejobbing and many new professions will surface, which will require new professional skills and abilities in the employees (Fantini et al., 2020; Fareri et al., 2020; Kazancoglu and Ozkan-Ozen, 2018; Kulyk and Parmova, 2017; Whysall et al., 2019). Some of the authors also listed down new job roles and positions that will arise due to automation and digitalization (Benesova and Tupa, 2017; Jerman et al., 2020; Kulyk and Parmova, 2017).
Pointing towards the structure of the job, authors emphasized that jobs must be designed in such a manner that they include extensive job rotation, the delegation of responsibility and authority, and flexible assignments in different areas (Mahdiraji et al., 2020; Shamim et al., 2017). Further, they must also aid team-building and a collaborative work environment. Job duties and responsibilities, for instance, the number of different tasks to be performed, control over tasks and level of autonomy (Cimini et al., 2020; Wilkesmann and Wilkesmann, 2018), and specifications such as skills, knowledge, behavior, and attitude required for the job should be clearly outlined (Cimini et al., 2020).
Recruitment
Industry 4.0 will not just transform the businesses, it will also change the recruitment strategies to attract and hire people for the new jobs that will usher due to automation and digitalization. For the same reasons, many authors have suggested that the recruitment of new employees in the organizations should be strategically done according to the requirements of Industry 4.0 (Llinas and Abad, 2019; Sony and Naik, 2020). It is considered of utmost importance to develop a deep insight into the essential knowledge and skills for the rapidly changing era (Pejic-Bach et al., 2020). Literature indicates that big and imminent challenges in the human–machine interface will require highly qualified and smart employees to dominate sophisticated and complex technologies of Industry 4.0 (Bag and Pretorius, 2020; Grencikova and Vojtovic, 2017; Hasan et al., 2020; Johansson et al., 2020; Liboni et al., 2019; Nwaiwu et al., 2020).
Attributes such as technical skills, expertise (Sony and Naik, 2020), competencies (Cimini et al., 2020; Kazancoglu and Ozkan-Ozen, 2018; Kiatsuranon and Suwunnamek, 2017), innovativeness, learning, and knowledge management (Shamim et al., 2017) will be crucial for the success of Industry 4.0. It is also stressed that in the fourth industrial revolution, HR professionals will need to become more strategic and creative in recruiting employees for new jobs and positions (Shaw and Varghese, 2018). It is also worth noting that many findings illustrated the instrumental role of educational institutions in providing the professional skills needed to support the transformation and also proposing that organizations should work firmly and collaborate with Governments, educational institutions, and others in drafting 21st-century curriculum for students to better equip them to meet the skills requirements for future (Benesova and Tupa, 2017; Liboni et al., 2019; Shaw and Varghese, 2018).
Training
Literature reveals that to meet the epochal challenges of Industry 4.0, the most effective strategy could be the training of employees. With advanced technologies, businesses need to ensure that their employees have the required skills and competencies to stay abreast of the changing environment. Analysis of the literature also shows that how important and essential addressing potential skills gap, and retraining and upskilling of employees are for developing a successful Industry 4.0 strategy (Alba and Stucki, 2019; Benesova and Tupa, 2017; Nwaiwu et al., 2020; Shamim et al., 2017; Shaw and Varghese, 2018; Whysall et al., 2019). Additionally, imparting technical skills and developing soft skills such as learning, problem-solving skills, innovative capability, knowledge, social skills, attitude, flexibility, technology acceptance, and teamwork have been recognized as key areas of training to drive change and leverage on Industry 4.0 (Bokrantz et al., 2020; Fantini et al., 2020; Grencikova and Vojtovic, 2017; Hasan et al., 2020; Johansson et al., 2020; Liboni et al., 2019; Pejic-Bach et al., 2020; Schneider, 2018; Shamim et al., 2017; Stachova et al., 2019; Wilkesmann and Wilkesmann, 2018). It is no surprise that several authors shared this view.
Furthermore, studies by Bag and Pretorius (2020), Li et al. (2020), and Sony and Naik (2020) provided insights on the benefits that training programs can offer to organizations. They reported that harnessing skills and competencies can support service excellence and sustainable manufacturing, increases knowledge, and influences organizational setup. A list of skills and competencies has also been listed by various authors for the successful implementation of Industry 4.0 (Cimini et al., 2020; Jerman et al., 2020; Li et al., 2020).
Development
Apart from training, the most important success factor, a great many authors emphasized the pivotal role of developmental programs, appropriate management approaches, opportunities for personal development (Alba and Stucki, 2019; Kulyk and Parmova, 2017; Shamim et al., 2017), effective learning and innovation environment, and efficient communication (Shaw and Varghese, 2018) in Industry 4.0 paradigm. The authors stated that due to the shortage of skills in Industry 4.0, there is a greater need for diversification in talent management strategies, with more focus on internal development rather than external recruitment. Findings from Whysall et al. (2019) reveal that an inadequate supply and inability of organizations to realize the employees’ expectations of accelerated career development can result in loss of talent. Therefore, it is extremely important to evaluate, build knowledge, skills, and abilities of employees, empower them with opportunities, and create career pathways for them to make them loyal and committed to the organization.
Compensation
Attracting qualified candidates may depend upon the company’s ability to offer extremely competitive compensation. Though not discussed much in the literature, Shamim et al. (2017) believe that the compensation in Industry 4.0 must reflect the contribution of employees in the organization. The author also mentioned that performance-linked compensation and incentives, profit sharing, and rewards can facilitate creating a climate suitable for innovations, learning, and knowledge enhancement.
Performance appraisal
Analysis of the literature identified only one study by Shamim et al. (2017) that determined performance appraisal as a success factor in Industry 4.0. paradigm. The authors in the study stated that the performance appraisal system should focus on employee development. Continuous feedback should be provided to the employees. Also, management by objective is the most compatible performance appraisal method in Industry 4.0 to assess the performance of employees.
Safety and work conditions
New methods of production, faster decision-making, and self-organized multiagent work system in smart factories may significantly influence the health and safety of workers (Pejic-Bach et al., 2020). Therefore, adequate and right working conditions are essential to ensure workers’ safety and efficiency. As highlighted by many authors safe, work conditions are crucial for volume production and avoiding potential dangers from fast-moving machines, vehicles, and equipment (Cocca et al., 2018; Tutak et al., 2020). Fantini et al. (2020) and Park and Huh (2018) mentioned in their studies that specific conditions of the workers may include the requirements for safety, because of age, permanent or temporary disabilities, stress, or fatigue. Bag and Pretorius (2020) suggested in their study that efforts should be made to maintain employee health and safety and work satisfaction for sustainable manufacturing in Industry 4.0.
Smart HRM practices
From recruitment to employee experience, from wellness to organization culture, from learning to an agile workforce, and from diversity to human capital, the role of the HR function is shifting from being a steward of employment to a steward of work. All the hardware, software, and data of HRM are expected to change in the age of Industry 4.0 (Strohmeier, 2018). HR leaders need to redefine their mandate and gear up for the new world of work which calls for smart HRM practices or HR 4.0 in organizations. Many recent studies also highlight that diverse technological advancement in Industry 4.0 will require an adapted and well-equipped strategic HRM, aligned with organizational goals and policies (Buchelt et al., 2020; Dhanpat et al., 2020; Liboni et al., 2019). Many authors believe that HR leaders, key technical personnel, and executives of the HR department must be updated, competent, trained, meticulous, skilled, and efficient to perform HR functions such as hiring, training, compensation, performance appraisal, safety, wellness, benefits, training of employees, motivation, retention, and change management while navigating Industry 4.0 (Buchelt et al., 2020; Kulyk and Parmova, 2017; Llinas and Abad, 2019; Shaw and Varghese, 2018; Sony and Naik, 2020; Strohmeier, 2018).
Studies by Buchelt et al. (2020) and Dhanpat et al. (2020) reveal that to mitigate challenges, HR professionals will need to assume the roles of strategic business leaders with competencies such as innovator, strategic partner, change agent, and people enablement. Cresnar and Nedelko (2020) mention that the personal values of HR professionals and employees will be significant in shaping the organizational environment for Industry 4.0.
Analysis of the literature also shows that innovative HR strategies should be formulated for the implementation of Industry 4.0. An environment of continuous innovation, learning, experimentation, risk-taking, and collaborations should be promoted (Schneider, 2018). Appropriate organizational culture should be developed (Li et al., 2019; Llinas and Abad, 2019; Mohelska and Sokolova, 2018). Aging workforce issues should be addressed by providing assistance devices, offering a better quality of life at work through ergonomic workstations and production processes, and giving value to their experience and maturity of older workers (Calzavara et al., 2020; Cocca et al., 2018). Efficient communication and employee development opportunities should be ensured, and employer brand should be developed and promoted to retain highly skilled workers and minimize attrition in this fast-changing age (Shaw and Varghese, 2018; Whysall et al., 2019).
Furthermore, few studies also assert that smart HRM powered by emerging technologies and new generation employees has the potential to transform all the HR processes (Bondarouk and Brewster, 2016; Sivathanu and Pillai, 2018). These technologies may be used extensively to perform various HR functions such as recruitment, selection, training, preparing job descriptions, and compensation management. Big data analytics can change the way data are collected, analyzed, and used for making the right decisions. AI can reduce the enormous amount of time and manual efforts that are spent on resume screening by automatizing the matching of a candidate’s resume and job description. Training needs can be automatically tailored according to employee knowledge and skill gaps (Bondarouk and Brewster, 2016). Automated, online tests, and remote video-based interviews can predict better on-the-job performance in the future and reduce the overall recruitment cycle considerably. AI chatbots can be used to remove the interviewers’ bias by real-time interpretation and validation of candidate responses. AR/VR can help in providing training to the employees anywhere at any time. It can also guide the onboarders with various office processes and layouts. Data-driven decisions like setting compensation, promotions, and performance appraisal can be facilitated through AI (Sivathanu and Pillai, 2018).
The review of the HR factors is summarized in Table 1.
HR success factors.
Industry 4.0 HR framework
In the fourth industrial revolution, businesses need to redefine work and the way they produce value. HR as a function also strives to redefine its mandate. The implications for HR are significant. New strategies for the management of HRs need to be developed. From the analysis of literature, the following Industry 4.0 HR framework has been developed for the successful implementation of Industry 4.0 (see Table 2).
Industry 4.0 HR framework.
Discussion implications and conclusion
The accelerating pace of Industry 4.0 creates an urgency to define how businesses must change and deliver within the digital transformation. Industry 4.0 also propagates significant management challenges. HR professionals will need to become smart to manage the era of Industry 4.0. They will need to continuously innovate, grow, identify challenges, barriers, and skill gaps, and revamp traditional HR methods to withstand major changes that will come their way in Industry 4.0 adoption.
The HRM approaches will also need to be changed with the change in the work environment and tasks in Industry 4.0. HR policies will need to be aligned with organizational goals and policies. Innovative HR strategies will be required for attracting, developing, evaluating, and retaining employees in the organization and enhancing their experience. Jobs will comprise less manual work and more control and supervision of the processes. Employees will no longer be associated with one particular type of job. They will need to share the space with intelligent robots. Information and data will be the key elements. Therefore, continuous learning, upskilling, and training would be necessary to develop the skills required for Industry 4.0.
The findings of the study strengthen the idea that HR will play a more strategic role in Industry 4.0 transformation. Effective HR strategies will prove to be a game-changer with the myriad of opportunities for companies. It will enable mass customization of products through agile and automated processes with a dynamic and predictive supply chain. The success metrics for businesses would be increased organizational effectiveness, profitability, and productivity, improved quality, and reduced labor costs, time, inventory and maintenance, and new value-generating services. Consequently, with the rapid obsolescence of technologies and offerings, companies will want to enjoy an early-mover advantage to Industry 4.0 to put themselves ahead of their competitors in global manufacturing. Moreover, with Governments in various countries investing resources into the Industry 4.0 mandate, the pace of transformation is increasing and future research is necessary to devise Industry 4.0 HR strategies.
Limitations
The limitations of the study include: first, the approach is explorative and requires quantitative validation. Second, the review is based on the articles extracted from a single academic source, that is, Scopus. Future research may include articles from other important databases as web of science, science direct, etc. Further, the factors unearthed may be discussed in more depth and statistically validated through questionnaires and interviews in different sectors and countries in the future.
Footnotes
Declaration of conflicting interests
The authors declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.
Funding
The authors received no financial support for the research, authorship, and/or publication of this article.
