A Recruitment and Human Resource Management Technique Using Blockchain Technology for Industry 4.0 (1812.03237v1)

Abstract: Application of Information Technology (IT) in the domain of Human Resource Management (HRM) systems is a sine qua non for any organization for successfully adopting and implementing Fourth Industrial Revolution (Industry 4.0). However, these systems are required to ensure non-biased, efficient, transparent and secure environment. Blockchain, a technology based on distributed digital ledgers, can help facilitate the process of successfully effectuating these specifications. A detailed literature review has been conducted to identify the current status of usage of Information Technology in the domain of Human Resource Management and how Blockchain can help achieve a smart, cost-effective, efficient, transparent and secure factory management system. A Blockchain based Recruitment Management System (BcRMS) as well as Blockchain based Human Resource Management System (BcHRMS) algorithm have been proposed. From the analysis of the results obtained through the case study, it is evident that the proposed system holds definite advantages compared to the existing recruitment systems. Future research directions have also been identified and advocated.

• The paper presents a novel blockchain integration that ensures immutable records to combat fraudulent credentials in recruitment and HRM systems.
• It utilizes MultiChain and PBFT consensus to significantly reduce candidate verification time from months to hours while maintaining data integrity.
• Empirical results show approximately 60% user preference for the approach, underscoring its potential to enhance transparency and efficiency in Industry 4.0 HR processes.

Blockchain-Driven Recruitment and Human Resource Management for Industry 4.0

The paper by Md Mehedi Hassan Onik, Mahdi H. Miraz, and Chul-Soo Kim addresses the integration of Blockchain technology into recruitment and human resource management (HRM) systems as applicable within the context of Industry 4.0. This paper proposes Blockchain-based systems, termed the Blockchain-based Recruitment Management System (BcRMS) and the Blockchain-based Human Resource Management System (BcHRMS), which are designed to optimize recruitment processes against the challenges posed by fraudulent information and biased hiring practices.

Core Contribution and Methodology

The core contribution of the paper lies in the novel application of Blockchain technology to create a transparent, efficient, and robust HRM and recruitment system that aligns with the needs of Industry 4.0. The authors identify existing issues in traditional HRM systems such as inflated resumes and fraudulent certifications, which introduce inefficiencies and financial costs.

The proposed BcRMS and BcHRMS aim to mitigate these issues through the use of Blockchain for creating immutable and transparent records. The system operates by maintaining a decentralized database that securely stores applicant and employee information, easing verification processes, and reducing the incidence of misinformation. The architecture employs consensus algorithms such as Practical Byzantine Fault Tolerance (PBFT) to ensure data integrity and decision accuracy during hiring.

Implementation and Results

The system was implemented using MultiChain, an open-source Blockchain platform, facilitating a prototype demonstration encompassing various entities like recruiting companies and legal agencies. Through empirical paper within South Korea and Bangladesh, the prototype system showed promising results, evidencing significant acceptance from organizational participants. Specifically, approximately 60% of surveyed participants indicated a preference towards adopting the Blockchain-driven approach, suggesting an increased trust in the transparency and efficiency promised by the system.

One striking result from the system is its potential reduction in response time for verifying candidate profiles—a process traditionally lengthy and labor-intensive. The authors claim that their proposed algorithm can validate and rank applicant data within a timeframe of hours, in stark contrast to the months typically required by conventional systems.

Implications and Future Directions

The implications of implementing such Blockchain-based systems are profound, especially in the arena of recruitment and HRM. By eliminating intermediaries, these systems can lower costs and minimize the likelihood of hiring mistakes. Furthermore, the enhanced security architecture intrinsic to Blockchain technologies promises a significant reduction in risks associated with data breaches and fraudulent records—a crucial factor given recent cybersecurity concerns.

Theoretically, the paper posits that integrating Blockchain into HRM systems contributes to realizing the visions of Industry 4.0, which necessitates smart, connected, and transparent industrial operations. Going forward, scaling the system to support larger datasets and implementing real-time applications represent critical developmental avenues. Further research might investigate the adaptability of Blockchain HR solutions across different regulatory environments and industrial sectors, particularly as policies around data privacy and cybersecurity evolve.

In conclusion, the paper offers a well-founded argument for the strategic integration of Blockchain technologies into HR systems, presenting a compelling case for its necessity in modern and future industrial landscapes. Such systems hold the promise of not only addressing current HR inefficiencies but of setting a new standard for operational efficacy and integrity.