Where Are The Changes By The Influence Of Blockchain Technology?

Changes influenced by Blockchain technology in business practices.

Business

Blockchain is an emerging technology that is promising in the business field. It involves the tracking of the transactions so that business people can be fully informed of the process. The paradigm shift is a significant change that occurs in a certain field. In this case, Blockchain technology has demonstrated its potential in influencing changes in business practices. Researchers and business individuals have predicted how beneficial technology will be in business. Businesses should indeed consider integrating Blockchain technology in the future. Moreover, the human resource department will be impacted, and this paper explains how it will be affected.

     Blockchain technology influences the existence of transparent contracts. When parties or different companies decide to do business together, they have to sign a contract with details of the terms and conditions. It consumes a lot of time for this to happen, considering that both parties have to be physically present. Each of the parties has to read the terms and ensure that they understand every detail. Sometimes, a party may alter the agreement without anyone else knowing. It brings about conflicts, and this can be avoided through the use of Blockchain. Blockchain technology has a smart contract where the agreement between two institutions or firms is computer code. It cannot be changed, and this ensures integrity. All parties receive the same copy, which is processed on the Blockchain. In smart contracts, the programmers code the terms of the agreement, and therefore, the parties have no way of altering anything on the contract (Fincher, 2019). It indicates that Blockchain brings about transparency, trust, and fairness in contracts.

     Blockchain will influence change in business through the elimination or minimization of intermediaries. Blockchain technology gives consumers the ability to track their goods from the source until they receive them. Therefore, they are informed of all the transactions, and hence there is no need for the middlemen (Fellman, 2018). The middlemen’s role is to represent the business owners in activities such as signing the contracts, ordering the goods, and ensuring that the payments have been made. Through the implementation of Blockchain technology, all these tasks can be completed without middlemen’s involvement. It is the case considering that companies and banks utilizing the technology are connected, and payments of the exact amounts are made, and the business owner is notified. For instance, Walmart consumes 2.2 seconds to be informed of where the food on the store shelves originated (Miller, 2018). It is in comparison to the seven days that were consumed before the use of Blockchain technology. It is a demonstration of how promising this technology is in the business industry.

     Blockchain ensures the security of stored data. Through technology, advancements, small, medium, and large businesses are storing data in digital form. Several cases have been reported of cyberattacks, influencing companies to search for ways to secure the data. Some of the stored information is sensitive and would have huge damage to the company if the wrong people access it. There are tension and anxiety in companies storing information digitally, and some of them have preferred to continue using hard copies. Blockchain technology helps eliminate the security issues considering that data is stored through sophisticated software and math rules. It makes it difficult for cybersecurity attackers to access to manipulate the data. Many companies might adopt Blockchain technology due to the kind of protection it provides to securing data. Therefore, the data is reliable and can be analyzed to influence future plans for the firm.

     Blockchain makes accounting activities easier. Accounting is the business that involves the determination of the sales and the validation of different transactions. These are complex activities that require a keen auditor. When an individual is tired, there is a higher probability of making errors. Handling figures requires a high level of concentration. Blockchain helps in solving accounting issues through managing accounting activities (Misra, 2018). The time consumed by the auditors is minimized, and they have sufficient time to focus on other issues. 

Blockchain technology and its effect on the society

Blockchain will influence change in business by ensuring a reduction in click frauds. Click frauds refer to the frauds related to online advertising where payments are made per click. It indicates that the people who own the websites get paid for every click performed in watching an advertisement. In this case, some people do several clicks on the advertisements by themselves to earn more money. It is wrong considering that not many people will have clicked on the advertisement as expected. It might be two or three people making the clicks. This is click fraud, and the owners of the websites are paid the amount they do not deserve. Blockchain technology will help businesses by reducing these click frauds, and thus, companies will reach their targets. It eliminates instances of underperformance and overcharging (Stambolija, 2019). When there is click fraud, underperformance by people who own the websites is demonstrated. They are paid too much money, which does not correlate with the effort used to influence people to click on the advertisement.

     Blockchain technology will influence change in business by improving the management of the supply chain. Business owners will be in a position to track their goods from the source up to when they receive them (“Intel Corporation,” 2018). Transparency in the supply chain ensures that the business owners are aware of the companies that have been involved in the creation and manufacturing of the goods. It is important to be aware of these details so that if there is a problem with the goods, the business person is aware of whom to call. For instance, Walmart has benefited from Blockchain technology to track products’ sources, where they were processed and stored. The expiry date is also demonstrated, which guides the sellers on the products prioritized in selling. 

Evidence that shows that Blockchain technology will change HR practices

     One of the pieces of evidence that suggests that Blockchain technology will influence human resources changes is its security measures. Blockchain technology involves encrypting data and other files, which prevents them from being accessed by cyber attackers. It is a feature that will encourage the human resource department to share information with other people, including the branches of the firm freely. There is no need to deliver certain files in person since they are sure that no one can access the shared files’ content. The human resource department handles sensitive and essential information about the company which needs to be secured. Sometimes, people in the human resource department prefer to deliver certain documents in person because they are afraid of cyberattacks, such as man-in-the-middle and eavesdropping. These are some of the issues that are eliminated by Blockchain technology. Therefore, Human resources will be flexible and trust the process of sharing all documents through the Blockchain to save time. 

     Another evidence is that the recruitment process will consume less time through the integration of Blockchain technology. Many people will be encouraged to store their personal information, which they can retrieve anytime and anywhere. In that case, they will allow companies where they go for interviews to access their information. The panel can see the performance, experience, and skills that an applicant has from carrying out the background check (“Intel Corporation,” 2018). There are instances when applicants lie about their work skills and experience, which misleads the employers. Therefore, Blockchain technology helps them access reliable and factual information that they will use to identify the individuals who meet the position’s requirements. The time that would have been used in collecting the documents is eliminated. From the background check, the employees decide on whom to invite for the interviews.

     Blockchain helps in keeping accurate attendance data. There are companies where a person in the human and resource department is selected to get to the workplace before everybody else. When they do so, they are supposed to ensure that everyone registers the time they get to work. It is important to do this since people get to the workplace late, but they indicate on the attendance list that they reported to work early enough. These details are essential when the firm wants to promote or delegate some tasks to someone. There are instances when the manager is going for a conference or a meeting for some days, and they have to delegate certain tasks. The chosen person must be an active employee and one who can be entrusted with the work. Therefore, the attendance list plays a role in this. Promotions cannot be offered to a person who never keeps time.

The human and resource department will integrate Blockchain technology, consisting of fingerprint, key cards, and iris scanning. When any of these methods is used, the data, including time, is stored. Therefore, no information can be altered, including time. It means that the time is accurately recorded, and the data can be used to determine the people who arrive late for work. It is through this that Blockchain technology will enforce change in human resources.

     Another evidence is the ability of Blockchain technology to enhance or improve the making of global payments. Several companies in the United States of America, such as Walmart, are operating in more than one country. These are countries with different currencies; therefore, making payments involves exchange rates and transaction charges. Thus, a firm uses a significant amount of money to send money to employees in foreign countries. Due to so many activities, managers employ intermediaries to handle all the processes and ensure that the money gets to the employees.

The middleman has to be paid, and therefore, these are some additional costs. Blockchain technology eliminates all these issues, and it ensures transparency. If there is a middleman, we are not sure of whether what they say is true. There might be some areas where they increase some costs so that they can benefit themselves. Blockchain technology helps in avoiding these instances where managers have to deal with this. Blockchain technology eliminates the banks’ needs, intermediaries, and no incurring of the exchange rates. The transaction will be performed faster hence paying the employees on time. It is important to note that all these transactions are recorded when using Blockchain, and all the information is encrypted. It means that security is a feature embraced in Blockchain technology, and the manager will later see who handled the money and what happened during the transaction. Therefore, the human resource department does not have the burden of going to the banks and engaging in the necessary process to send foreign employees money. They will use Blockchain to do so, which saves their time and money that could be used in transportation. 

Human resource management functions that will be impacted by Blockchain technology

     One of the functions that will be impacted is the recruitment function. Human resource departments are responsible for handling the recruitment process and ensuring that individuals with the right qualifications, skills, experiences, and talents are employed for the job. It consumes a lot of time deciding on whom to employ, considering that these are people they do not know. Human resource management has to ensure that the applicants’ documents are valid. It involves making calls in several institutions. It is an activity that consumes a lot of time and energy. Studies indicate that 75 percent of the human resource managers have realized that many people lie in their curriculum vitae (“Editorial Staff,” 2019). With these statistics, there may be people who included wrong information in their CVs and were not detected. It is wrong since the company suffers from having an unqualified employee. Verifying the details in a document is sometimes challenging, considering that some people are cunning. Some of them are ready to do anything to acquire a certain job position in a firm. Therefore, they get someone who can make them a falsified document that no one can tell it is fake. During the recruitment process, there are many applicants, and therefore, the recruitment panel spends less than a minute looking at the curriculum vitae and other documents. It increases the chance of having workers who do not know and the skills indicated in the papers. Nevertheless, Blockchain will change all this by offering trust in the accuracy of the data it provides (“WI-FI Attendance,” 2019). It provides information about an applicant, and it is reliable considering that data stored in the Blockchain cannot be manipulated. The data is collected from trusted institutes, and therefore, the firm is fully informed of the capabilities of the different applicants. 

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     The second function that will be impacted is the referral process. When an employee resigns or moves from one company, they will need a recommendation letter to use when applying for a job in another company. The recommendation letter demonstrates the performance of the employee and if they are responsible. The letter is significant since it influences the perception of the recruiters about an employee. Therefore, in scenarios where an employee was always late reporting to work and never met the work deadlines, they expect to have negative information in the letter. Nobody will be willing to employ such an individual. Therefore, there is a high probability that this person will forge a letter and ensure that the details are positive things about him. Some people are very good at this, and it might be difficult to notice that the letter is falsified. It is a function that will be significantly impacted by Blockchain technology, considering that the company can access information about an employee from the public database (“WI-FI Attendance,” 2019). Data in the Blockchain is stored in a public database, and anyone can access it when permitted by a certain firm. In other words, the implementation of Blockchain technology will eliminate lying in the hiring process.

     The third function that will be impacted is attendance management. Human resource has the responsibility of ensuring that all the workers indicate the time they report to work. It is important to have such records informed of people who are serious and committed to their work and those who are taking it for granted. The trend of how the employees report to work helps realize workers with certain difficulties that no one can tell. When an employee tends to be late, the human resource manager meets with them to determine why that is the case. A valid reason will influence creating a solution since reporting to work on time ensures that all the activities are carried out as planned. There are cases where a book is placed at the main entrance to the offices, and those who work late do not indicate so. Therefore, it is challenging to obtain accurate data. Another option is having someone in the human resource department report early to ensure that people write the exact time they get to work. It is tiresome and annoying to follow up on people like this. Blockchain technology will influence change in this function since through the use of biometrics and key cards in accessing the firm, and data is captured (“WI-FI Attendance,” 2019). The data is whom and at what time they reported. 

     In conclusion, Blockchain technology has the potential to influence significant change in the business industry, which will be beneficial. Time and resources will be consumed as people learn about using it and integrating it into their activities. However, it is worth considering since it ensures transparency, trust, and reliable data provision. The middlemen’s roles will be made obsolete by Blockchain technology, which will help businesses save some capital. Smart contracts will ensure fairness and equality since none of the parties can alter the agreement’s terms and conditions. Blockchain technology saves a lot of time and other resources since most businesses, such as smart contracts and securing data, are provided. The human resource functions impacted by Blockchain technology are recruitment, attendance management, and referral processes.

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