Digital Transformation Of Human Resource Management: Strengthening Government in the Vuca Era

Abstract

Indonesia’s level of competitiveness is still low, as indicated by the ranking of Indonesia’s Competitiveness Index in 2021, which is ranked 37th out of 64 countries, and ranked 11th out of 14 Asia Pacific countries. The massive development of the digital era has exacerbated Indonesia’s low competitiveness so that the government sector faces a problematic condition where everything changes very quickly, is unpredictable, and is difficult to control, which is commonly referred to as VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) Era. For the quality of public services in the VUCA era to remain professional, the government must adapt and innovate, especially in managing its human resources. This study aims to analyze the strengthening of government organizations in the VUCA era that focuses on the digital transformation of human resource management (HRM) to create a sustainable competitive advantage. The method used in this study is a systematic literature review with data acquisition through articles that have been published in reputable international journals. The results show that the VUCA era encourages innovation in government organizations in the digital transformation of HRM, which plays a significant role in creating strategic and competitive human resource advantages. This is due to selecting a motivated workforce that significantly contributes to government performance.