[3] Use of HRM Theories and Emerging Practices

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Implementing digital technologies in recruiting and staffing isn’t just about technology; It also applies to several core HRM theories. These theories provide a foundation for understanding the principles and dynamics behind digital HRM practice.


1. Maslow’s Hierarchy of Needs 


(Kendra C., C.,2024)



Maslow’s (1943) theory suggests that individuals are motivated by a hierarchy of five needs: physiological, safety, love/belonging, esteem, and self-actualization.

Here’s how digital HRM tools can address these needs during recruitment:

Physiological: Providing quick access to job opportunities via mobile-friendly platforms ensures basic access to work and income.

Safety: Secure application platforms, data protection, and communicated job stability help meet safety needs.

Belonging: AI-driven recruitment chatbots and virtual onboarding tools can foster early candidate engagement and connection to the company culture.

Esteem: Personalized feedback systems, recognition tools, and gamified assessments boost candidate confidence and motivation. 

Self-Actualization: Platforms that highlight growth paths, development opportunities, and mission alignment help candidates feel a sense of purpose.


2. Herzberg’s Two-Factor Theory 


(Charlotte N, 2025)


Herzberg (1959) divides motivational factors into

  • Hygiene factors (prevent dissatisfaction): salary, work conditions, and job security.
  • Motivators (promote satisfaction): recognition, responsibility, achievement, and growth.

Here’s how digital recruitment systems support both:

Hygiene: Clear and transparent job ads with pay info, benefits, and stability signals through recruitment portals. Secure data handling builds trust

Motivators: Tools that track candidate achievements (e.g., skill assessments), AI-personalized job matching, and growth-oriented employer branding enhance engagement.


3. The Resource-Based View (RBV)-Digital Tools as Strategic Assets

Barney introduced the firm's resource-based view (RBV) (1991). "Firm Resources and Sustained Competitive Advantage". (Barney, 1991) Its ability to acquire and manage valuable, rare, and inimitable resources. When considering the digital transformation of HR, an organisation's human capital is regarded as one of its most valuable resources.

Digital HRM tools can identify, assess and acquire top talent through AI, machine learning, & Data analysis. These technologies allow companies to streamline recruitment and enhance decision-making to select the most skilled and suitable candidates.



(Business S, 2024)


Example: AI-powered tools like HireVue and LinkedIn Recruiter leverage machine learning algorithms to evaluate candidates, matching their skills, qualifications, and experiences to the specific needs of the organization, ensuring that only the best talent is recruited 


4. Human Capital Theory (HCT)

This theory, developed by Becker (1964), focuses on the idea that employees' knowledge, skills, and abilities are critical assets contributing to an organization's success (Becker, 1964).


Human capital theory suggests that organizations benefit from investing in human capital through training, development, and strategic hiring. Digital technology can better identify high-potential candidates and assess their long-term potential, aligning with the principle of Human capital theory. 


Example: Platforms such as Pymetrics assess cognitive and emotional abilities through games, ensuring that candidates’ skills align with the roles they are being considered for, contributing to long-term organizational success


(pymetrics,2020)

5. Talent management theory.

Talent management is an important process that allows employers to identify the right candidates and help them grow professionally and advance their careers. (Indeed, 2025)

It’s all about a company’s commitment to recruit, hire, retain, and develop the most talented leaders and employees in an industry. (Sarah A., 2018)

(AIHR,2025)



In the digital HR, talent management goes beyond traditional recruitment practices.

Talent-matching technologies go beyond traditional applicant tracking systems (ATS) technologies by using artificial intelligence to better match suitable candidates to available opportunities (Dr Dieter V, and Dr. Marna, 2025)

Digital tools support the HR department in tracking candidates throughout the hiring process, evaluating their potential, and aligning talent acquisition with organizational goals more efficiently.


Reference:

Kendra C. (2024). Maslow's Hierarchy of Needs [online]. Available at: https://www.verywellmind.com/what-is-maslows-hierarchy-of-needs-4136760. Accessed: 16 April 2025.

Charlotte N. (2025). Herzberg’s Two-Factor Theory Of Motivation-Hygiene [online]. Available at: https://www.simplypsychology.org/herzbergs-two-factor-theory.html. Accessed: 16 April 2025

Business S( 2024) What is Resource-Based View (RBV)? YouTube. Available at https://www.youtube.com/watch?v=Vh9rKENm6Zo&t=1s (Accessed: 02 April 2025).

Pymetrics (2020). What is Pymetrics? YouTube. Available at https://www.youtube.com/watch?v=7RSuwNbheGQ&t=1s (Accessed: 02 April 2025).

Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.

Becker, G. S. (1964). Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education. University of Chicago Press.

Indeed editorial team. (2025) What Is Talent Management. Career Guide [online]. Available at: https://www.indeed.com/career-advice/career-development/what-is-talent-management. Accessed: 04 April 2025

Sarah A.(2018). What is talent Management. Talent blog [online].Available at:https://www.linkedin.com/business/talent/blog/talent-acquisition/talent-management-business. Accessed: 04 April 2025

Dr Dieter V, Dr Marna (2025).8 Innovative Talent Management Initiatives for the Modern Workplace. Talent management [online]. Available at: https://www.aihr.com/blog/talent-management-initiatives/. Accessed: 04 April 2025



Comments

  1. Tasni YoshiniApril 15, 2025 at 12:51 AM

    This is an even more accurate synthesis of how digital HR tools interface with foundational HRM theories—especially RBV, HCT, and Talent Management theory. I particularly appreciate the way you have linked emerging technologies like AI and machine learning back to long-standing theoretical frameworks. It reinforces the idea that digital transformation is not replacing traditional HR wisdom but enhancing it.

    ReplyDelete
    Replies
    1. Chathura ThilankaApril 15, 2025 at 7:54 PM

      Thank you for the insightful and encouraging comment! I'm glad you appreciated the connection between digital HR tools and foundational HRM theories like RBV, HCT, and talent management. It’s exactly as you said—technology is a powerful enhancer, not a replacement, of core HR principles. Your feedback truly adds depth to the conversation

      Delete
  2. sadaniwijewickrameApril 15, 2025 at 8:08 AM

    This post is a good one as it relates basic theories of HRM with present-day trends. I appreciate that you pointed out how theories like Maslow’s hierarchy and Herzberg’s two-factor theory shaped contemporary practices such as employee experience and the hybrid work model. According to Torrington et al. (2020), grounding new HR strategies in sound theory can bring structure and sustainability. Great work bridging the past with the future.

    ReplyDelete
    Replies
    1. Chathura ThilankaApril 15, 2025 at 8:01 PM

      Thanks for your comment, and I updated the post concerning your comment.

      Delete
  3. Madhavi JayasinghaApril 15, 2025 at 8:22 AM

    Great insights on how digital technologies align with core HRM theories! The integration of RBV, HCT, and Talent Management Theory into digital recruitment processes shows how tech can enhance strategic decision-making and long-term organizational success. Well-explained!

    ReplyDelete
  4. Kasuni SamaranayakeApril 15, 2025 at 6:51 PM

    This clearly shows how digital recruitment tools are more than just tech they're strategic assets rooted in core HRM theories like RBV, HCT, and Talent Management. It highlights the smart alignment between technology and long-term HR goals.

    ReplyDelete
  5. The Impact of SUSTAINABLE HRM FOR APPAREL INDUSTRYApril 15, 2025 at 8:45 PM

    Excellent integration of theories with digital HRM tools—clear, insightful, and practically relevant.
    Commented by Lahiru Randima

    ReplyDelete

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