Analyzing of digital transformation in businesses in the context of human resources functions: Example of Azerbaijan

Technology and informatics developing with Industry 4.0 have not only affected the living of individuals, but also considerably affected the management and business styles of establishments. Modern businesses accept that the traditional management methods and tools used in the past are no longer useful and adequate and that business forms have become complex, In addition, they state that the solution lies in modern technology and its tools. The Covid-19 pandemic has been a huge leap forward in the digitalization of businesses around the world. Digitalization has affected all areas of business,either changing or improving it. Human Resources Management is one of the main areas that are exposed to this change and appear in various ways. Digitalization in HR management has led to the emergence of the term Digital HR. The aim of this study is to determine the impact of digital transformation on businesses and human resources management in enterprises operating in Azerbaijan. What's more is its relationship in this context. In this context, the digital transformation levels and digital HRM practices of businesses were measured and it was investigated whether there was a relationship between these levels. In addition, it was also examined whether the perception levels of employees regarding digital transformation and digital HRM practices of business differ according to variables such as their gender, age, education level, position and their experience. A quantitative research method was used in the research accordance with the purpose of the study. Relational survey design was used as the research design. An online survey form was used as a data collection tool and the results of the study were obtained with the SPSS program. The survey form consisted of three parts: Personal Information Form, Digital Transformation Scale and Digital HRM Practices Scale. Research data was obtained from 209 people working in the fields of Human Resources or Personnel Management in small, medium and large-scale enterprises operating in Azerbaijan. Research results show that digital transformation and digital HRM practices add a new dimension to HR functions and activities. Additionally it affects productivity.