Implications of Blockchain Technology on Strategic Human Resource Practices: Potential Losses of Key Functions

William Ben GUNAWAN

doi:10.38142/jisdb.v1i1.1202

Authors

William Ben GUNAWAN PPM School of Management, Indonesia

DOI:

https://doi.org/10.38142/jisdb.v1i1.1202

Keywords:

Administrative Responsibility, Blockchain, Human Resource, Payroll, Performance Capability, Reward, Strategic Human Resource Management

Abstract

In this paper, I argue that the implication of blockchain – a rising technology – may replace three human resource functions: rewards, administrative responsibilities, and performance management. A feature of blockchain that may cause this is called smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. These smart contracts can automate and streamline various HR processes, from salary disbursements to performance appraisals and compliance management. By leveraging blockchain's decentralized and immutable nature, organizations can enhance efficiency, transparency, and security in these critical HR functions. Integrating blockchain technology promises to reduce administrative overhead, minimize errors and fraud, and foster greater employee trust. This paper explores the transformative potential of blockchain in HR, examining how blockchain-enabled systems can operate, the benefits they offer, and the broader implications for HR departments. By analyzing the potential displacement of traditional HR roles and the strategic considerations for adopting this technology, this study provides a comprehensive understanding of how blockchain can redefine HR functions and contribute to long-term organizational success.

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