week 4 HR
Human Resource Information Management Model based on Blockchain Technology
Xin Wang
School of Traffic and Transportation Management
Dalian Maritime University
Dalian, P. R. China
Libo Feng*, Hui Zhang
Digital Society & Blockchain Laboratory,
School of Computer Science and Engineering,
Beihang University
Beijing, P. R. China
Chan Lyu,
Assistant Professor, School of Business,
Macau University of Science and Technology
Macau, P. R. China
Li Wang Yue You
School of Economics and Management
Beihang University
Beijing, P. R. China
Abstract
The authenticity of human resource
information has become an important factor that
affects the cost and efficiency of human resource
management. With the rapid development of
mobile devices and Internet technology, various
human resource risks caused by information
asymmetry constantly bring economic loss, and
even a fatal blow, to enterprises. Based on
Blockchain(BC), this paper aims to combine
traditional encryption technology with Internet-
distributed technology, to establish a human
resource information management model that
reduces the risk of authenticity of human resource
information. This model aims to solve the lack of
discrimination of the authenticity of human
resource information, and to provide authentic and
effective decision support information to the
human resource management of an organization.
The operation method, such as Bitcoin, is used to
certify the human resource documentations, as
well as to bind the information and the
documentation. Furthermore, human resource
information is recorded in an accounting book
based on BC technology; thus, modifying and
validating may be difficult in the entire net work.
Consensus mechanism, smart contract, accounting,
and payment functions of BC can provide the basic
support for human resource information
management. Moreover, decentralization of the
protection mechanism can be achieved to achieve
low cost and high efficiency of information transfer,
and to ensure a high-performance work system in
the human resource management of enterprises.
Keywords: Blockchain; Human resources; Information management 1. Introduction
With the rapid development of society and the
accelerating process of economic globalization,
enterprises face unprecedented pressures and
challenges. Human resources, as an important
carrier of knowledge, technology, and service, is
the core element of enterprise management
practice. The strategic value and significance of
human resources for the development of
organization cannot be replaced. The increasing
update of information technology has become a
powerful driving force for the rapid development
of all sectors of society. Human resource is the
primary productive force. Only retaining talent can
promote the development of the organization.
Accordingly, modern human resource management
should combine information technology with an
advanced human resource management concept,
optimize management method and mode, as well
as improve human resource management
efficiency and effect to guarantee the attainment of
the core competitive power in the dynamic
environment of an enterprise.
The authenticity of human resource
information directly affects the cost and efficiency
of human resource management. Some surveys
show that over 70% of job seekers show relatively
hidden and fraudulent information during the
recruitment process. Some job applicants submit
fake résumés, diplomas, and certificates of
2017 IEEE Symposium on Service-Oriented System Engineering
978-1-5090-6320-8/17 $31.00 © 2017 IEEE
DOI 10.1109/SOSE.2017.34
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qualification, and others deliberately exaggerate
their abilities. To enhance the quality of service, the
process of improving identification and
management of human resource information
authenticity has become an urgent issue that
requires solutions from the human resource and
social security department. This paper aims to
establish a human resource-oriented management
mode by introducing BC technology to reduce the
risk faced by human resource information
authenticity, thereby providing authentic and
effective decision support information for the
human resource management of an organization.
2. Analysis of risk management needs of human
resource information Information is the key issue in human resource
management. For a long time, the authenticity of
human resource information has been in a
relatively ineffective regulatory state. In the
practice of human resource management, we
constantly face the following risks:
(1) Employment risk
In the labor market, the labor age value that
job seekers are willing to accept, as well as the
ability, educational background, and experience of
job seekers are the private information of
applicants. Furthermore, enterprises spend
significant costs to obtain the information, as well
as to conduct interviews and psychological tests. In
most cases, enterprises do not know if the types of
job seekers comply with the needs of organizations.
Reality shows that a relative number of job seekers
are not honest, and many enterprises do not easily
believe in the message of job seekers. Job seekers
intentionally deceive enterprises, and enterprises
cannot completely identify the types of job seekers
that they have to deal with. Thus, the application
process may have poor results. This practice is
simply a form of adverse selection in information
economics. Adverse selection results in increased
costs. Therefore, a high uncertainty exists in the
labor service trade, there by resulting in human
resource risks of enterprises.
(2)Risk of moral degeneration
In the process of implementing labor contracts,
enterprises frequently address the following
problems: employees are lazy and they cut corners.
Alternately, employees sell products at lower
prices to relatives and friends, or they claim back
expenses for tickets unrelated to their work. In the
process of implementing labor contracts, the
efforts of employees cannot be generally observed.
Employees know their own efforts, but managers
do not. Thus, employees may behave in an indolent
manner, such as contributing to non-labor.
The information is asymmetric between
enterprises and job seekers (or employees). Job
seekers have private information regarding their
types. Uncertainty occurs whether or not they
truthfully inform the enterprises about their types.
After labor contracts are assigned, uncertainty still
exists whether the employees are lazy or diligent at
work. This uncertainty poses risks to human
resources. Thus, information asymmetry is the
important reason for human resource risk.
The human resource risk information that
affects the operational efficiency of enterprises are
as below includes the following: � demographic information of human resources,
including age, marital status, work experience
as measured by number of years, and so on;
� education and training of human resources, including education and various training
experiences;
� ability of quality information of human resources, including technical title, technical
grade, certificate, and so on;
� pay-for-performance information of human resources, including assessment result, salary
incentive, promotion, and so on;
� incentive information of human resources, including various certificates of honor, as well
as reward and punishment information.
The risks of human resources caused by
information asymmetry constantly bring economic
loss to enterprises, even causing a fatal blow.
Therefore, developing a new human resource
management modeis imperative to effectively solve
employment risk and the risk of moral
degeneration in human resource management. 3. Blockchain Technology model
3.1Introduction to Blockchain technology The concept of a BC was initially presented by
Satoshi Nakamoto in a paper titled “Bitcoin:A Peer-to- Peer Electronic Cash System,” which was published in 2008. A BC is a type of new decentralization data framework. It is commonly owned, managed, and supervised by all nodes in the network, without accepting a single control. This technology is the core of Bitcoin and other new digital encryption currencies. Many well-known banks and insurance companies, as well as brokers and future companies worldwide have made technical development in the field of BCs. They used blockchain-based Bitcoin and other electric currencies in related commercial systems or application services.
Blockchain technology is a type of technical program to save, validate, transfer, and communicate network data through its own distributed node without depending on a third party. Based on agreed regulations and agreements (similar to hash algorithm and various mathematical algorithms adopted by Bitcoin), all nodes can automatically and safely validate and exchange data in the system without any human intervention. A BC is a series of data blocks generated from the association with the cryptography method. Each block contains all network trade
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information in the last 10minutes, which is used to verify the validity of the information (anti-fake mechanism) and to form a next block. A BC has the following main features:
(1) Decentralized structure. Blockchain
technology does not rely on third management
organizations or hardware facilities; without
central control, all nodes realize information self-
validation, transmission, and management.
Decentralization is the most prominent and
essential feature of BC. (2) Trustlessness. Data exchange in the system
does not require nodes to trust one another. The operation regulations of the entire system and all data contents are open and transparent. Therefore, nodes are unable to deceive each other in terms of rule scope and time range designated by the system.
(3) Collective maintenance. Data blocks in the system are commonly maintained by all nodes with maintenance function in the entire system. Furthermore, these nodes with maintenance function can be involved by anyone.
(4) Reliability and security. When 51% of all data nodes cannot be grasped, network data cannot be controlled and modified without restraint. Thus, the BC itself becomes relatively safe and is able to avoid subjective and artificial data modification. Therefore, if a greater number of nodes with strong calculation ability are involved in the system, then the data in this system have higher security.
(5) Open source. Blockchain technology is based
on the open-source concept. Except for the encrypted private information of trading parties, BC data are accessible to all people. Anyone can search the BC data through the public interface, as well as develop related applications. Thus, the entire system is highly transparent.
(6) Anonymity. Nodes do not need to trust one another except when a legal requirement exists. Technically, the identity information of all nodes in the block does not need to be open or verified, and transfer can be anonymous.
3.2 Comparison of Blockchain and existing technologies
At present, human resource information
management systems are based on the B/S or C/S
framework. Several safety factors exist in this
management mode. As a new development mode,
Blockchain technology adopts consistency
verification, Byzantine Agreement, public key and
private key encryption mechanism, including a
hash test and a series of security algorithms and
protocols to ensure security in management,
storage, tampering, and other aspects. With the
development of Blockchain technology, security is
guaranteed whether to the human resource
department or system users. The credibility of this
technology has been further strengthened.
Table 1 shows a comparison of three technologies
in terms of consistency verification, storage
equipment, real time, encryption mechanism,
tamper resistance, and other security aspects.
Table 1 Analysis of different design model
Consistency
verification
Storage
equipment
Encryption
mechanism
Internal
operation
Real time Tamper
resistance
C/S
framework
None Host Common
password
encryption
Yes Poor Can be
modified
inside
B/S
framework
None Network
server
Common
password
encryption
Yes General
Can be
modified
inside
Blockchain
technology
Yes
Each node of
block chain
Public and
private key
encryption
Public Strong Cannot be
modified
Table 1 shows that, compared with the
existing technologies, the management system
adopting Blockchain technology is significantly
improved in security. Meanwhile, permission to the
management system becomes more open, and it
can effectively avoid malicious tampering of system
information from the internal staff. Therefore,
further enhancement is expected in the efficiency
of the management system. It is different with the
traditional software engineering by using C/S
architecture or B/S architecture, BC architecture
more need to consider distributed, non center,
multi-copy communication, consistency,
concurrent, conflict control problem. It is similar to
C/MS (Client /Multiple Server Client)
4. Human resource information management mode based on Blockchain technology
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4.1 Contents of human resource information management
Based on the analysis of human resource risk
information, the contents of human resource
information management include the following:
(1) Basic information management of human resources
Inclusion: employee information, contract
information, archival information, as well as
organizational and personal information. The main
information of employees should be managed,
recorded, and searched. The system sets different
permissions for people to read through the relative
contents. The staff in the human resource
department can read through assigned contract
information, new information, modified
information, and canceled information.
(2) Post-appointment and title information management
Post-appointment and title information
management is one of the crucial personal system
components in China, and one of the basic
functions of personnel departments at all levels.
Professional title management is directly related to
the vital interests of many professional and
technical staff. With greater prominence in the
aspects of policy and correlation, professional title
management further relates to the enthusiasm of
professional and technical personnel; thus, these
professionals can be mobilized or protected.
(3) Training and deployment information
management
Based on the training experience and results
of human resources as well as the previous post-
deployment information, competency, job
promotion, and some post moves can be realized.
Training and post-move information of human
resources are recorded in a computer information
system that is promptly updated to ensure human
resource-related competency, and to promote
efficient use of human resources through efficient
allocation.
(4)Performance appraisal and salary
information management
The performance appraisal and salary information
management is the core of human resource
management. Its results, reflecting human resource
input and output, directly affect the possibility of
the promotion. The relevant information is entered
in the computer system to obtain the
corresponding performance appraisal and salary
information. Then, the relevant sheets are output
through these software information systems to
predict the investment value of human resources. 4.2 Design of human resource management framework based on Blockchain
Human resource information management
based on BC is based on the establishment of a
private BC. The owners of the BC are firms or
enterprises. The BC is open to the internal staff and
is not limited to the management. Thus, the BC can
improve the transparency of the management
system, particularly in terms of training, allocation,
performance, salary, and sensitive information. It is
highly significant to be fair, impartial, open, and
improves the credibility of enterprises to establish
a good and positive atmosphere in the enterprise.
The design of a human resource information
management system is shown in Fig. 1. The system
is divided into four layers, namely, online
distributed database, basic layer of block chain,
application interface, and human resource
management system. All layers are independent,
with a certain coupling, thereby facilitating
software development and operation maintenance.
Fig.1Design of a human resource management system framework based on Blockchain
4.3 Smart contract model of human resource information management
Information asymmetry in human resource
management brings risk to enterprises. We can
design a series of contract arrangements to
stimulate and restrain the behavior of people. This
model is a contract conceived by human resource
management. It is based on the following idea: all
actions taken by individuals are for their own
interests; and the relevant information is
asymmetric between enterprises and employees.
Generally, employees grasp additional information
regarding jobs.
Once the authenticity of human resource
information is involved in the model, it is recorded
and embodied as a digital contract to be saved in
the accounting book. The generation of a smart
contract is an automatic behavior without artificial
intervention. Each smart contract has an unique
digital ID, which can be encrypted and embedded
in the text or on other digital carriers that record
the content of the contract. Therefore, a contract
management system can be used to ensure
effective identification and maintenance. In this model, the BC is created and maintained
by an engineering team. The trust relationship throughout the stem is automatically established in the block chain, and does not need to be grasped by a certain organization. This new human resource
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information management model successfully achieves decentralization. Therefore, a larger number of cross verification and supervision channels exist.
4.4 Language design To better realize the function, we propose a BC modeling language to specify, design, develop, and test blockchain-based applications. It needs to support system customization and extension. BML will be a new modeling language as existing modeling languages do not model BCs.
In the BML framework, the detail needs should be specified. Firstly, the personal and parties information that involved will be shared; furthermore, we must consider the frequency of sharing. In addition, the security and privacy mechanisms are also important in the model. So there is a lot of Encryption algorithm application in the process. Taking into account the convenience of management, there will have the locking mechanisms in it.
Application modeling concludes the process modeling and architecture modeling. It is can be shown as the following:
BML is a common visual modeling language, which is used to describe the business process and data flow in the process of block chain development. BML is in the UML (United Modeling Language) on the basis of introducing the time stamp, encryption mechanism, chain structure modeling method. BML applies to all kinds of blockchain software development methods, block chain software life cycle of various stages, a variety of application areas and a variety of development tools. BML includes the concept of semantics, representation and description, which provides a static, dynamic, system environment and organizational structure of the model. 4.5 Testing Blockchain Applications Testing consistency of BC nodes will be relatively simple as each block has been voted to be consistent before they can be stored, and each block is encrypted with the hash of the previous hash to ensure that these blocks cannot be changed without detection (at least theoretically). Testing a new block is a part of the BC protocol.
Thus, regression testing is relatively simple as contents in any nodes can be randomly selected for testing, and the results should be consistent. Testing multiple BCs is a research topic such as ABC, TBC, SBC, HBC and DBC.
A TBC(trading blockchain) will store only information necessary to carry out trades and
settlements only, and it will not store all the account information for all the participating administrative departments.
An ABC(Account blockchain) stores account information within a management institution or a family of institutions. For example, an ABC can store all kinds of information about the Department staff.
A HBC(History blockchain) can record the history of the transaction information. When you need to check the transaction history, it will greatly improve the efficiency of retrieval.
A DBC(Data blockchain) can will store the big data of the detail application. In the specific application, there may be a lot of audio, video and other large amount of data storage, then you can use DBC. This can reduce the amount of communication and improve the processing efficiency of BC.
A SBC(Summary blockchain) can store comprehensive records of transactions, accounts and other information, it runs on other BC.
There is also a lot of interconnection in various BCs. For example, TBCs and ABCs interoperate with each other in banking applications. The traditional software to consider the deployment and upgrade of the server and the client, such as B/S architecture only on the server deployment and upgrade; C/S architecture need to be upgraded at the same time in the server and the client. Application of block chain based on the need to synchronize all the nodes, and C/MS architecture, and to all the server nodes and synchronization upgrade deploymen 5. Conclusion
This study aims to solve the information risk
of human resource management by introducing BC
technology. Establishing a human resource
information management model based on this
technology can provides are and effective
supporting information for human-resource
decision making. This model can realize the valid
application of human resource information at an
extremely low operation cost without any third
party. The human resource information
management model based on BC is established to
reduce the risk of authenticity of human resource
information, to solve the problem of the lack of
discrimination of the human resource information
authenticity, and promote the use efficiency and
effect of human resource management information.
6. Acknowledgement This work is supported by National Key Laboratory
of Software Environment at Beihang University,
National 973 Program (Grant No. 2013CB329601)
Beijing Municipal Natural Science Foundation
(Grant No.9142012 and 9152009), National
Natural Science Foundation of China (No.
71271013 , No. M1450009 and No. 61462003)
Federation Social Sciences Circles of Liaoning
Province (No. 2016lslktglx-04) and Research
Base of Federation Social Sciences Circles of
Liaoning Province.
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