POLNENI MADHAVI , MR. P SAGAR KUMAR 03 08 The shift toward Industry 40 has necessitated a radical transformation in how organizational human capital is managed This project titled HR Digitalization Challenges provides a comprehensive analysis of the transition from traditional human resource management to Digital HRM DHRM within Uniscient Engineering As an engineering firm operating in a highly technical and competitive landscape the integration of AIdriven recruitment cloudbased payroll and automated performance management systems is no longer a luxury but a strategic necessity The primary objective of this study is to identify the sociotechnical hurdles encountered during the digital migration process While technology offers efficiency this research uncovers significant humancentric barriers including employee resistance to change the widening digital skill gap among legacy staff and concerns regarding data privacy and algorithmic bias The study utilizes a descriptive research design gathering primary data through structured questionnaires administered to the employees and HR leadership at Uniscient Engineering Key findings indicate that while digitalization has improved administrative speed by 35 approximately 42 of the workforce feels overwhelmed by the pace of technological updates The data analysis further reveals that Integration Complexitythe inability of new digital tools to communicate with existing legacy systemsremains a toptier operational challengeThe project concludes with strategic recommendations tailored for Uniscient Engineering suggesting a Phased Adoption Model combined with aggressive digital literacy workshops By addressing the psychological impact of automation alongside the technical infrastructure the organization can successfully navigate the digital divide This study serves as a critical blueprint for HR practitioners looking to balance hightech solutions with hightouch human values in a postpandemic corporate environment Copyright (c) Journal of Science Engineering Technology and Management Science. All rights reserved 2026