Write 500-600 words about the recommendations based on the industry problem: lack of regulation and cyber security. I've attached a word doc, please write the recommendations after reading the other parts as it is important for the recommendations to be linked.
•Literature review – sub themes HR processes and operations are continuously evolving with the advancements in technology. While the evolution of blockchain technology can disrupt daily workflows and cause challenges in the recruitment and onboarding process to arise, the implementation of blockchain technology would be highly beneficial to businesses such as Randstad as it will increase efficiency and accessibility for HR managers. The role of blockchain technology is imperative to the success of organisations, by enhancing recruitment and onboarding processes by increasing accessibility to employee information that is verified and authenticated. In addition, this literature review will discuss the evolution of blockchain technology, what it will mean for HR processes and the influence of blockchain on the recruitment and onboarding process. The evolution of Blockchain technology HR technology is a term use to describe the software and hardware that systematise manual tasks surrounding HR functions that include “talent acquisition and management, payroll, workforce analytics and some administration” (reference). Moreover, blockchain technology can be defined as a digital ledger where “decentralized transaction” (Yli-Huumo et al 2016, pp 1) of data and currencies occurs through a network of computers on a decentralised database. Blockchain technology was first conceptualized in 2008 during the emergence of cryptocurrency Bitcoin, the very first blockchain application. Blockchain technology has now progressed into other streams that is beyond cryptocurrencies merely. Influence of Blockchain on the Recruitment and Onboarding Process The future of HR technology includes blockchain and the fundamental role it has in increasing the digital transformation processes of organisations (Koncheva, Odintsov, and Khmelnitski 2019).The rapid advancements of blockchain technology can be applied to HR processes, “an effective approach would be introducing blockchain as a database technology for managing and maintaining digital transaction records” (Sarmah 2018, pp 29). Applying this approach to HR employment processes, individuals and employers would be able to upload their employment history and qualifications to the blockchain technology which can be accessed by all employers and enabling organizations to attain enhanced and more specific information regarding the talent market (Tapscott & Tapscott 2017). The verification process of an employer is often facilitated by a third party to check the validity of their references, due to the legitimacy of the trusted ledger of blockchain, employers have quicker access to authenticated information (Yi et al, 2020) preventing fraudulent activity from occurring. In contrast to traditional recruitment methods that are long and extensive, blockchain reduces the number of administrative tasks that need to be completed further supporting the role of block chain which is to stimulate productivity and increase time efficiency. What this means for the role of HR managers · Automation removes the very time consuming task of the recruitment process which is typically associated with the role of HR managers · Blockchain enables managers to focus on more important strategic and analytical aspects of the organisation · List some examples of strategic or analytical roles or responsibilities that HR managers typically have · Could this lead to more productivity? · Any other advantages of having less time spent on recruitment practices Concerns around Cyber Security While blockchain technology can evidently be highly beneficial for organisations, there has been increasing concern for the disruption and its influence on the recruitment and onboarding process. Kursh and Gold (2016) explore the issues of blockchain technology and the negative influence it can have on the recruitment and onboarding process. They highlight that there is a lack of regulation and the need for increase in need for security and regulation. Data needs to be replicated and made available on all servers, however “synchronization can be problematic” (Kursh and Gold 2020, pp 11) Highlighting this can cause inconsistency and delay with updating data that includes employee information to all servers. Which can have a negative impact during the recruitment stage as employee information that is available may not reflect the current job history or qualifications of an employee. Therefore, while there are disadvantages in implementing blockchain technology, as time progresses and there are improvements made to address these disadvantages. The evolution of blockchain technology is inevitable and will be highly beneficial to the HR processes of organisations. FOW PART 2 The development of blockchain technology and the issues that arise can be understood in the literature review, the widespread use of blockchain technology helps and facilitates the recruitment process and saves a lot of time and costs, the mainstream application of blockchain can unlock value and benefits for employers and employees starting with the ability of hiring managers to place the right people in the job. (Bhaduri, 2018) However, on top of this comes the issue of security due to the lack of regulation of blockchain. Blockchain systems require information to be stored on nodes of many different participants and a set of mechanisms to ensure that the data is consistent to enable operations to function properly. Therefore, blockchain security risks can be caused by flaws in the technology itself, but also by the lack of effective management of related data and applications. The impact on the recruitment process can also be caused by inconsistencies in employee information due to 'synchronisation delays' (Kursh and Gold 2020). In the future of work, in the context of the precision economy(Dellot, Mason & Wallace-Stephens 2019), this will be an era of hyper-monitoring, where companies will analyze employee information through monitoring systems. In this case, most of the employees' data will be uploaded to the blockchain information system, and managers will be able to assess the quality, level and efficiency of the employees' work from the database. However, due to the lack of monitoring in blockchain technology, there is a high risk that employee information may be out of sync or confused, and this lack of technology can create a poor work experience for employees, leading to a lack of job security and reduced motivation. However, as the demand for remote work increases, the decentralized nature of blockchain data and the immutability of data requires the establishment of a corresponding data content monitoring and governance system. The issue of regulation of blockchain technology relates to the extension of blockchain technology applications. Blockchains are more secure than traditional computer systems, but hackers can still disrupt blockchain-based applications, systems and businesses. Because of the lack of regulation it is likely to be hacked, as in the case of the DAO attack (CoinDesk, 2021), because just like DAOs, blockchain operations can get out of control. Secondly, for the HR company Randstad, a hack of the blockchain could lead to a breach of employee information. This could cause a great deal of distress and alarm to employees. It is therefore essential that blockchain technology is regulated and that a relatively secure regulatory mechanism is established. Given the current uncertainty about the legal implications of blockchain, it becomes even more crucial that smart contracts are drafted correctly, and that they need to regulate the law that applies between them and the competent courts in the event of a dispute. And consider limiting the possibility of entering into such an agreement to entities/individuals located only in jurisdictions where a prior assessment of the legal implications of a blockchain-based business model has been conducted ( Lexology, 2021). The solution is not just about governments protecting privacy. A sovereign identity on the blockchain will allow us to capture and control our own data. While there is much work on several privacy protocols. Blockchain applications should therefore operate within existing regulatory structures and not outside of them. To overcome this challenge, governments and extremely controlled sectors may need to develop regulations for blockchain. But this means that regulators in all industries must understand the technology and its impact on businesses and consumers in their sectors. (Remaining challenges of blockchain adoption and possible solutions, 2021). •Recommendations •Reference list Chillakuri, B & Attili, V, 2021, “Role of blockchain in HR's response to new-normal”, International Journal of Organizational Analysis Davison, H K, Maraist, C, Bing, M N & Church, A H 2011, ‘Friend or Foe? The Promise and Pitfalls of Using Social Networking Sites for HR Decisions’, Journal of business and psychology, vol.26, pp.153-159. Dellot, B, Mason, R & Wallace-Stephens, F 2019, The Four Futures of Work, RSA, viewed 14 May 2021. Dierksmeier, C & Seele, P 2020, ‘Blockchain and business ethics’, Business ethics, vol.29, pp.348-359. Koncheva, V, Odintsov, S & Khmelnitski, L, 2019, “Blockchain in HR”, International Scientific and Practical Conference on Digital Economy, pp. 504-507 Sahay, P 2015, ‘The complexity of recruiting’, Strategic HR review, vol.14 , pp.182-187. Sarmah, S, 2018. Understanding blockchain technology. Journal of Computer Science and Engineering, vol 8, no 2, pp.23-29. Spence, A 2018, Blockchain and Chief Human Resource Officer, Blockchain Research Institute, Mountain View, California. Sutner, S 2017, “HR technology (human resources tech)”, TechTarget, viewed 11th of May 2021,
Tapscott, D & Tapscott, A, 2017. How blockchain will change organizations. MIT Sloan Management Review, vol 58, no 2, pp 1-7. Upadhyay, A, Mukhuty, S, Kumar, V & Kazancoglu, Y, 2021, “Blockchain technology and the circular economy: Implications for sustainability and social responsibility”, Journal of Cleaner Production, pp.1-27 Yi, C, Yung, E, Fong, C & Tripathi, S 2020, “Benefits and Use of Blockchain Technology to Human Resources Management: A Critical Review”, International Journal of Human Resource Studies, vol 10, no 2, pp.1-10. Yli-Huumo, J, Ko, D, Choi, S, Park, S, & Smolander, K, 2016, “Where is current research on blockchain technology? —a systematic review”, PloS one, vol 11, no 10, pp 1-27. Bhaduri, A. (2018), “People@work”, Retrieved from Hindu Business Line, available at:https://www.thehindubusinessline.com/specials/people-at-work/adopting-blockchain-tech-in-hr/article22881175.ece#. CoinDesk. 2021. The DAO Attack: Understanding What Happened – CoinDesk. [online] Available at: Lexology.com. 2021. Legal issues of blockchain and how to deal with them | Lexology. [online] Available at: Finextra Research. 2021. Remaining challenges of blockchain adoption and possible solutions. [online] Available at: