By Mostafa Sayyadi and Michael J. Provitera 

In the age of digitalization, leaders must effectively develop HR tech to increase their companies’ market value. This effective HR tech leadership requires the solutions we will indicate in this article. These solutions come from our interviews with 81 senior managers from eight countries. Leaders can make their leadership on HR tech more effective with these solutions. Effective leadership in HR tech can help businesses to achieve sustained change and eventually a higher degree of effectiveness. In the absence of this effective leadership, companies lose the required direction to achieve a high degree of competitiveness and market value, and cannot implement a successful change in order to adapt to the age of digitalization.  

Introduction  

The effective leadership of HR tech is one of the most important issues that organizations are facing today. Today’s economy is more digital than ever, and organizations are taking on a new meaning. HR tech helps many organizations solve their issues of cyber security and operational risk management. One question remains whether effective leadership in HR tech may cause the prices of products and services to increase. This may be true at first, but the digital divide is here to stay, and investing in digital products and services will replace to analog systems of the past. Therefore, the first shift in the organization’s leadership to augment HR tech is to move towards reducing costs and increasing profits through effective leadership in HR tech.  

Our interviews with 81 HR managers in a wide range of industries from eight countries (Australia, China, South Korea, the United States, and four European countries), tell us that there is a significant relationship between market value and effective leadership in HR tech. Many leadership development sessions are built around new systems and better and more improved ways of conducting business. As organizations develop effective leadership in HR tech, eventually, their market value will grow increasingly. Organizations that focus only on profitability without considering the importance of HR tech achieve a lower market value compared to their competitors. This qualitative research is based on the following overarching research question:     

How does effective leadership in HR tech increase market value? 

This research also indicates that effective leadership in HR tech also requires the solutions we have revealed in this article for leaders. 

Let The Data Speak 

Our interviews with 81 HR managers indicate that there are several logical reasons behind this significant relationship between market value and effective leadership in HR tech. Consistent with previous studies, this study has also shown that the first reason is that with the effective leadership of HR tech, organizations achieve a level of complexity that will cause the competition to be unable to imitate them. [1] [2] [3] [4] This acts as an important strategic flank for organizations to achieve a high level of competitive advantage. [5] [6] [7] [8] [9] 

Second, the effective leadership of HR tech for organizations acts as a suggested attempt to reduce costs which, if announced, offers a bounce up in the stock price temporarily. [10] [11] [12] Organizations that effectively lead HR tech with extensive investment have a higher potential to reduce costs compared to other organizations. For example, our research shows that many successful organizations in East Asia, especially in countries such as South Korea and China, develop HR tech leadership as an important weapon in competition with American, Australian, and European organizations. They drastically reduce costs and increase the profit and market value of their organizations. Also, Korean and Chinese organizations have brought the leadership of HR tech to a level of optimal performance that can minimize the time between the product development life cycle and the management of the relationships with customers and the supply chain of goods and services. This eventually adds to the flow of cash more quickly in their organizations.  

How to Better Lead HR tech? 

Our research also suggests several solutions for better leadership of HR tech. First, our findings suggest that leaders design and implement an integrated information technology system that allows the organization’s departments and employees to communicate with each other all over the world. At the same time, this integrated and extensive system, which has led to the growth of complexity and competitive advantage of the organization, has also reduced the chances of competitors imitating them. [13] [14] In addition, this organizational design also provides an important role in the growth of innovation by sharing ideas and communication. [15] A successful example of this integrated information technology system can be seen in Alibaba, which compared to many of its international competitors such as Amazon, has reached an amazing level of cost reduction and innovative growth. 

The second suggestion is to use new project management techniques and design an organizational culture that is suitable for the HR tech of organizations— Level Three Leadership. Jim Clawson coins the phrase that level three leadership focuses on vision, purpose, values, stories, music, and symbols. Training and development of human resources should also become an inseparable part of the strategic leadership of organizations. Working together in Strategic Human Resource Management can bridge the digital divide. In fact, this proposal is to maximize the role of HR tech in the supply chain and communication with customers so that costs can be reduced as much as possible. Organizations such as Walmart, Target, and Kmart Australia have mastered the supply chain relationship and will only work with vendors that can meet their expectations. The next suggestion is to train active leaders in the information technology sector with management and business methods so that the maximum possible result can be achieved in this combination of information technology with the supply chain and communication with customers. We recommend Jim Clawson’s book titled Level Three Leadership for leaders. 

In Conclusion 

Leaders are more important than ever today and they must be aware of the importance of HR tech in their companies’ market value and the vital role of solutions that can facilitate effective leadership in HR tech. In this article, we have shown that to manage new challenges and achieve a higher level of market value compared to competitors, leaders should start implementing solutions that facilitate the effective leadership of HR tech. This is a secret weapon of market value in the age of digitalization.

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About the Authors

Mostafa SayydiMostafa Sayyadi works with senior business leaders to effectively develop innovation in companies, and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders. 

Michael ProviteraMichael J. Provitera is an Associate Professor at Barry University. He is an author of Level Up Leadership published by Business Expert Press. 

 

References  

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