To talk about the decentralisation of human resources in times of digital transformation is necessary to talk about digital transformation. If we talk about digital transformation, we are specifically about incorporating technologies into specific jobs. It is through the use of these technologies that opportunities arise in developed markets for the development of new business strategies.
Concerning technologies, many of them have already been internalised to the maximum. They coexist with us and in our daily lives, as is the case of Big Data, Cloud Computing, the Internet of Things, and Advances in Mobility or Social Business. But this progress in a complete transformation also requires the incorporation of new skills both in people and in the reinvention of organisations.
Under the present reflection as a blog entry, I want to incorporate the need for progress in the reinvention of organisations concerning a specific aspect such as centralisation vs decentralisation. That is, if, under the umbrella of transformative progress, a decision is given, per se, to be decentralised precisely because of this technological progress.
Suppose we refer to the economic theory that deals with human resources. In that case, we can observe that the more valuable the knowledge possessed by employees at lower levels and the more difficult it is to transmit to top management, the more convenient it is to work in a decentralised environment. However, the greater the coordination and control problems, the more centralisation is desirable.
Well, let’s look at the knowledge of employees at levels that can be considered lower. We can see how knowledge has improved due to technological “help”, which undoubtedly makes it easier for the employee to carry out their daily tasks. This first reflection favours the decentralisation of human resources in times of digital transformation. Still, the non-existence of coordination and control problems also favours the availability of directed and coordinated resources.
How to mitigate and eliminate these handicaps of coordination and control theoretically indicated? The answer, which does not go in only one direction, has a lot to do with the existence of agile methodologies, which allow work teams to be perfectly coordinated and have the necessary technology available.
It could be concluded, therefore, that decisions by and for human resources during digital transformation have a high percentage of decentralisation vs centralisation precisely because of the more excellent knowledge of “intermediate” workers and because of access to clear improvements in the management and coordination of human resources through the processes of agile methodologies.