The digital transformation of the organization implies the integration of digital technologies into all aspects of the business model and it is a condition for the competitiveness of organizations in dynamic business environment. Human resource management (HRM) represents a strategic approach to managing the organization's key resources – employees. The focus of this paper is the impact of digital transformation on human resource management activities. The aim of the research is to determine the effects of using digital technologies in HRM activities. Quantitative research was conducted through a survey among 82 employees of the HR department in different sectors in Bosnia and Herzegovina. The results were analyzed using a regression model to identify key correlations between digital transformation and applied HRM practices. Research results show that digital transformation improves the HRM process, rationalizing the time and resources needed. Digital transformation affects the HRM practices, therefore a strategic approach to the digital transformation is important, so that organizations can maintain competitiveness on the market and at the same time to provide better working conditions for their employees.