The effect of Artificial intelligence in human resource management

 


HR performs so many operations and so much money is involved in them, that is one of the reasons why data science tools have been used in HR to use the data in meaningful manner (Tambe et.al 2019). As per the definition given in Tambe et.al (2019), AI referrers to a “broad class of technologies that allow a computer to perform tasks that normally require human cognition, including decision-making”. Company uses AI technology in the HRM to develop their services, increase productivity, reduce cost, and eliminate human errors and biases (Hmoud and Laszlo, 2019)

HRM is comprise of recruitment, selection, evaluation, development retention, consultation, and negotiation with employees (Jatobá et.al, 2019). In these set of processes recruitment and selection, training and development and employee retention are the most viable area that AI can be implemented (Iqbal, 2018).

1.     AI in recruitment and selection - Unlike relying on LinkedIn this increase the avenue for recruit passive candidates. AI uses bots to search through the web and scour hundreds of sites including personal websites, tech chat rooms, meet-up groups, and social media sites to identify the potential candidates. Also, AI give information about possibilities of someone open to a job change. This will help HR and operational managers to identify the best talent for their position (Almog, 2018 cited in Iqbal, 2018).  Further this takes-over time consuming repetitive tasks such as sourcing and screening. For example, there are more than 30,000 resumes received per month by Under Armour, US based company which manufacture footwear, sports and casual wear. They used AI system called Hirevue to overcome this problem. Candidates are interviewed with pre-recorded questions using this system and the candidates who met the requirements will be passed to the next round of interview with managers. Another example is First Job, an online recruitment firm implementing Mya, the AI bases recruiting assistant who can talk to thousand of candidates at once. Pre-screening questions will be asked and ranks them based on pre-defined factors by the system and once this is done it alerts the management when a position has been filled (Iqbal, 2018).

2.     AI in training and development – AI can be used to handle many requests on the company policies and benefits. Further AI can recommend training programmes to employees based on the questions they asked. AI also provide vocational training to employees which will reduce the time that HR representatives will have to spend on. The other advantage is, AI can give customized training programmes based on the individual employee performances and act as personal tutors to employees helping them in their development (Iqbal, 2018).

3.     AI in Employee retention - Predictive and other AI technology can be used to identify the possible employee resignations and attract them which would otherwise lead to high cost and hassles with employee turnover (Iqbal, 2018).

However, the effective implementation of AI technology in Human resource management have challenges as well. As per Tambe et.al (2019) HRM has to face following challenges in implementing AI;

1.     Complexity of HR outcomes such as what constitutes being a “Good Employee”

2.     The data set in human resources are less standardize leading to poor predictions.

3.     The outcomes of human resource decisions have serious consequences such as who gets hired and fired. In such case decisions based on use of algorithm based system may not be justifiable.

4.     Employees can manipulate or adversely react to the algorithmic based decisions which will affect the outcomes.

 

References

Hmoud, B. and Laszlo, V., 2019. Will artificial intelligence take over human resources recruitment and selection. Network Intelligence Studies7(13), pp.21-30. Available from https://www.ceeol.com/search/article-detail?id=840067 [Accessed on 03rd May 2022].

Iqbal, F.M., 2018. Can artificial intelligence change the way in which companies recruit, train, develop and manage human resources in workplace. Asian Journal of Social Sciences and Management Studies5(3), pp.102-104. Available from https://core.ac.uk/download/pdf/233593847.pdf [Accessed on 03rd May 2022].

Jatobá, M., Santos, J., Gutierriz, I., Moscon, D., Fernandes, P.O. and Teixeira, J.P., 2019. Evolution of artificial intelligence research in human resources. Procedia Computer Science164, pp.137-142. Available from https://www.sciencedirect.com/science/article/pii/S1877050919322045 [Accessed on 03rd May 2022].

Tambe, P., Cappelli, P. and Yakubovich, V., 2019. Artificial intelligence in human resources management: Challenges and a path forward. California Management Review61(4), pp.15-42. Available from https://journals.sagepub.com/doi/abs/10.1177/0008125619867910 [Accessed on 03rd May 2022].


Comments

  1. Due to AI, certain limitations make it less implementable in the overall recruitment process and can make questionable outcomes with respect to its validity. AI is assumed to replace administrative tasks in both the recruitment process and HRM in the recruitment activities, which will intervene job applicable factor, and the recruitment outcomes. AI would extend on the conventional recruitment process and be competent for offering a more extensive options for both the job applicants and company.

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  2. Present business environment is highly competitive and highly volatile. To obtain competitive advantage organisations must find new ways. With development of technology most manual work transferred to online platforms. This process expedite due to covid 19 pandemic. New trend is using artificial intelligence. Organisations cannot handover each and every HRM process to artificial intelligence platforms. But as you mention organisations can use artificial intelligence to selected process and obtain maximum advantage of it.

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