Metaverse and Modification Needs of HRM Practices and Policies
Metaverse and Modification Needs of HRM Practices and Policies
Abstract. This study aims to develop a conceptual framework that explains the
modification needs in Human Resources Management Practices and Policies when
an organization uses the metaverse as an alternative to virtual offices. Recent dis-
cussions in the existing literature broadly conclude that hybrid work offers high
employee productivity, well-being, and mental health. However, not all types of
work can be done through the metaverse, while some work may be done using
the metaverse. Other discussions also offer the metaverse as a place for recre-
ation rather than work. Looking at reviews of current literature and interviews
with three senior leaders, we provide detailed insights and strategies for maxi-
mizing the metaverse as a virtual office through modifications to human resources
management (HRM) policies and practices that could be considered for imple-
mentation. Our finding shows that organizations need digital leadership and work
ethics to benefit from using the metaverse. In addition, the list of modifications in
HRM includes (a) the Gamification of HRM practices and policies, and (b) lev-
ering up readiness to change. The specific outcome to be targeted in this study is
understanding the future opportunities and challenges of employee management
in the workplace.
NFT (non-fungible tokens). NFT is a digital asset that describes the original object, it
is estimated that the development of this metaverse will take a long time and be carried
out in stages until 2024. The emergence of the metaverse was initiated by the founder
of Facebook, Mark Zuckerberg, who announced on October 29, 2021, that Facebook
would change its name to Meta and also make significant investments in developing the
Metaverse technology.
This Metaverse is a technology that is slightly different from Augmented Reality
and Virtual Reality. Park & Kim [1] stated that three things distinguish the Metaverse
from AR and VR, two technologies that appeared before the Metaverse. First, while
VR-related studies focus on physical and rendering approaches, Metaverse has a more
robust aspect as a service with more sustainable content and social meaning. Second,
Metaverse doesn’t have to use AR and VR technology. So, even if a platform does not
support VR and AR, it can still be a Metaverse application. Lastly, the Metaverse has a
scalable environment that can accommodate large numbers of people, which is critical to
amplifying the social meanings emphasized by this technology [2]. Based on Mozumder
[3], 43% of manufacturing companies revealed that VR will become mainstream in their
organizations in the next two to three years to develop infrastructure with artificial
intelligence techniques. For example, the use of metaverse in the work environment has
a significant impact on training and improving skills and the professional knowledge base
in the future, that educational games on computers and mobile have a major contribution
to improving cognitive and social skills. The existence of Metaverse which applies AR
and VR technology to provide interactive experiences in the study of abstract concepts
shows promising results in all fields. The integration between the Metaverse and also
Game based Learning is an innovation in the field of education which has a very positive
impact on the development of problem solving, cognitive skills, analysis, mathematical
thinking, communication, creativity and skill management [4]. Some of the benefits of
metaverse, firstly, in Metaverse there is Augmented Reality, which can be used to build
intelligent environments by utilizing location and network technology, so that activities
carried out remotely will later feel like meeting face to face, even if virtually. The
second is Lifelogging, which is a technology capable of capturing, storing and sharing
experiences, information, objects and data obtained while in the Metaverse [5].
Moreover, recent discussion related to technological advancement like the metaverse,
virtual, augmented reality and also artificial intelligence has become key drivers for
change in work characteristics, problem solving and the need for work competence.
Accordingly, we believe that in the future, organizations will need to prepare a work
office that is capable of fulfilling the physical need, hybrid and virtual environment
to maintain the stability of work productivity. We cannot go back to the previous era
where a routine work characteristic is that of a hierarchical and rigid work rhythm.
Mark Zuckerberg envisions a future working in a metaverse, with people teleporting as
holograms present in offices, eliminating the need to travel. This can be awkward as
this vision promotes the ‘feeling’ of being in the room together, having a sense of the
same space and making eye contact. However, the challenge is understanding as well as
demonstrating where virtual will make a difference. How much one can deal with the
anxiety, migraines, and nausea from virtual or hybrid offices remains to be resolved.
Metaverse and Modification Needs of HRM Practices and Policies 287
needed in designing the metaverse as a hybrid or virtual office so that factors such as the
productivity and mental health of each member of the organization are well maintained.
2 Research Methodology
To gain insights into these changes and how to prepare for them with spiritual values,
we conducted a survey of 7 (seven) literatures with the theme of the future of workplace,
metaverse as workplace, digital office, virtual office and essentials things toward human
centred in HRM policies for hybrid works.
mindset will always find and study new things. The digital mindset will surely differ
from that of the conventional. This is because the digital mindset has innovation, out of
the box ideas, creativity and high focus on problem solving at its frontiers. Whilst digital
competence or an individuals’ capabilities in understanding and utilizing hardware and
software such as digital operation systems including internet networks, communication
tools et cetera.
Why does these three main components in digital and global leadership as a pillar for
software is important and require extensive resources to prepare? There are a few reasons:
first, digital transformation is about individual mindset changes, not just disruption and
the development of information technology. Secondly, God has created Earth to be
developed as a better living space. If technology makes human lives better, humans will
need to take its main role in order to create a better life. Third, individual humans are
part of a wider community that need to collaborate together to learn how to develop the
working world and business while also at the same time contributing to the betterment
of mankind. These reasons then become the deciding factor on why the role and style
of a leadership will determine the success of digital transformation and globalization.
4.1 HR Gamification
We argue that in the practice and policy of human resource management in a virtual office,
the gamification approach will be more appropriate to use. The gamification approach
is an approach in human resources management based on games or games supported
Metaverse and Modification Needs of HRM Practices and Policies 291
by the use of technology that exude relaxedness for employees and also increase their
competence to innovate and capability to reach organizational goals.
Gamification is an element of the game that has a fun concept in the workplace to
increase reaction and involvement with the subject matter [12]. An implementation of
this approach is aimed at employees to increase productivity and motivation in the work
environment. The elements of gamification are points, badges, leader boards, challenges,
and rewards. It can be used to determine learning outcomes. By challenging the trainees
to learn, they will provide the best effort during learning. By involving trainees in the
game, they may be more interested with the content, thus it increases their effort. Gam-
ification can also become a combinative touch of old implementations and new within
the organizational management, one of its examples is the old implementation of the
organization to provide information on employees’ ranking with the aim of directing and
correcting employees performance, alternatively new implementations can include gam-
ification whereby the organization can provide real-time access on the information of
employee performance within an organization. On the other side, it is widely regarded
that validation and rewards motivate employees to perform better in their workplace
[11]. We recommend that efforts to develop including gamification concepts can be in
the form of gamified training, gamify compensation, dan gamify performance appraisal
will help increase employee engagement.
Furthermore [13, 14] also mentions that gamification positively impacts work
engagement on employees who collaborate from separate workplaces. Gamification
can bring about an employees’ competitiveness as they will focus and participate in
conducting work. This can create increasing opportunities for work motivation, increase
participation and employee willingness to work even harder in completing their work
tasks. Within a company, gamification can be utilized in any field as the expected output
is an increase in employees’ attachment with their work and an implementation process
that is fun and interactive.
A gamification approach can trigger employees’ competitive spirit. This can gain a
positive result when conducted in a fair manner. This means that gamification can indi-
rectly assist as if they were playing a game. As an example, managers would like to give
feedback to employees using a leader board, employees can observe their own perfor-
mance according to a determined benchmark and in comparison with other employees.
From the many sources explaining gamification, it can be concluded that this approach
is capable of indirectly developing an employees’ competence and capabilities in a fun
way.
readiness, in a variety of situations and conditions that will trigger change. The summary
of our research findings can be illustrated graphically in Fig. 1.
5 Conclusion
Insights about the importance of building a metaverse as a virtual medium in the work-
place and providing several strategies are key and conditions given the volatility of world
jobs, this cannot guarantee that the prerequisite conditions offered will remain the same
for the next 5–10 years. It can be concluded that the implementation of the metaverse has
a huge opportunity to be able to support the work implementation process even better.
The current development of the metaverse has entered a new chapter with innovations
and breakthroughs created by researchers to help the current work environment. The
benefit of artificial intelligence will help us process information so that we receive the
final results of robots that are easy to control via computers and also the internet. It also
can help the physical limitations that cannot be achieved by ordinary humans. With these
facilities a new work environment is created and also become an interesting experience.
Advances in the development of the virtual world can replace the nature and style of
leadership, and robots and machines can replace all human work, therefore engagement
values in term physical, cognitive and emotional are also important in the virtual world
to maintain social meaning. That goes on as a basic fundamental value to catalyse any
changes that occur in the organization. Therefore, further research is needed to include
how to select talent and prepare future leaders to be more agile, adaptive and empathetic
to the needs of humans in the environment.
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