Article 06 - AI and Technology in Performance Management: Prospects in Workforce Productivity Enhancement.

 Introduction

 In the Digital Era, the use of AI systems and other advanced technologies in transforming business functions has greatly facilitated the management of performance in an organization. These systems are aimed at optimizing productivity of the workforce. Businesses are adopting AI-enabled systems for employee performance evaluation where feedback and HR functions are provided automatically. With these changes, organizations can improve the objectivity, efficiency, and strategic management of employee performance.

 

In this article, I will present the integration of AI and technologies in performance management efforts with the aid AI based theories that emerged and findings regarding the implementation of AI-based systems for performance management.

 

Integrative Perspectives on AI and Tech in Performance Management

 

1. AI-based Performance Management System (Schraagen et al., 2021)

 In reference to Schraagen et al, 2021, performance management was integrated with AI for automated feedback provisions, continuous performance monitoring, training and eliminations of barriers within the organization.

They highlight these aspects with AI performed systems.

·        Predictive Analytic: An AI application enables the prediction of performance measures by an employee based on their output in the past.

·        Continuous Feedback Mechanisms: AI is instrumental in helping organizations design tools for unbiased performance feedback in real-time.

·        Personalized Learning & Development: Based on skill gaps and performance insights, AI aids in creating tailored training programs for employees.

 

2. The Digital HRM Model (Jiang & Messersmith, 2022)

Jiang and Messersmith (2022) developed the Digital Human Resource Management (HRM) Model with the infusion of Artificial Intelligence (AI) into HR practices to improve performance management.

Some of the components comprise

AI driven Performance Appraisals: Minimizes biases and increases fairness on the evaluation process.

Automated HR Processes: AI handles administrative processes which allows the HR managers to shift from operational to strategic decision making.

Improved Employee Experience: Digital tools captivate employees’ interests through interactive engagement self-service HR portals.

 

How AI and Technology Enhance Performance Management

 

1.Real Time Monitoring and Feedback

Performance tracking is often seasonal, subjective, and in some cases, nonexistent. AI systems have the capability of enabling continuous performance monitoring.

AI improves real time performance management like,

AI powered dashboards continuously monitor employees' KPIs and productivity over time.

Feedback systems automatically provide personalized constructive suggestions for improvement.

Employee engagement and job satisfaction are monitored with sentiment analysis tools.

With the real time monitoring system based on the AI, it will impact on Workforce Optimization in few aspects.

 

       Employees become highly responsive and willing to improve due to the immediate need to provide feedback.

       Employees are issued with objective data regarding their performance.

 

2. The Use of AI in Developing Talent and Personalized Learning

 AI enhances training and development by offering appropriate learning pathways for the specific skill gaps identified.

 

When we used optimized AI, iut will helps to employee development by

AI-based learning management systems (LMS) allocate training programs according to their assigned tasks.

Analytics that predict future skill gaps identify and recommend training programs necessary to prepare for the gap.

AI-powered coaching tools provide tailored coaching sessions.

 

How Workforce Optimization helps :

·            Employees acquire skills that the organization most needs.

·            Insights generated from AI enhance, not only reduce, spending on instruction, but also make learning more productive as well.

 

3. Use of AI to Reduce Bias and Increase Objectivity in Performance Appraisal

 

AI-assisted performance management systems utilize a data-driven approach to assessments to eliminate human bias as much as possible.

How AI decreases bias in performance appraisal:

·            AI evaluates work performance based on objective parameters and not on personal judgment, eliminating favoritism.

·            NLP tools remove bias from feedback and performance reviews by analyzing the text for undesirable terms.

·            ML identifies over-reliance bias on personal judgment to mark certain performance stereotypes of people without names attached.

 

E.g AI powered performance appraisal provides the same chances to all individuals irrespective of characteristic by focusing on objectively measurable performance features.

 

How Workforce Optimization helps :

·            Measurement devoid of bias encourages trust towards supervisors which is greatly needed and useful once harnessed.

·            Identifying performance gaps has never been more accurate and transparent with the use of AI.

 

4. AI In Employee Engagement and Well-being

AI monitors employees’ mental health, level of engagement, and job satisfaction which greatly improves the employee experience.

 

With the AI improves engagement and well-being:

·            AI sentiment analysis tracks employee morale and well being through their internal communications.

·            Anonymous online mental health catboats are being distrusted AI powered support.

·            AI and wearable track employee stress.



E,g. AI driven HR platform identifies when an employee is most likely to experience burnout and proactively includes them in wellness programs to mitigate disengagement.

Impact On Workforce Optimization:

·            Increased engagement with lower attrition rates.

·            Enhanced productivity due to pro-active wellbeing activities.

 

Conclusion

AI and tech are transforming performance management with real-time feedback, impartial reviews, customized training, and elevated workforce engagement. The AI Drivern performance management framework (Schraagen et al., 2021) and Digital HRM Model (Jiang & Messersmith, 2022) demonstrate the potential of AI in workforce optimization.

AI fueled performance management presents challenges around data privacy concerns, AI discrimination, and reluctance of employees. However, if organizations address these issues, they will be able increase AI powered performance management systems enhancement of workforce productivity and organizational performance.

Strategic integration of AI in performance management will yield a transparent, data rich and highly productive work environment which will allow organizations to thrive in the digitally advanced landscape.

 

References

Jiang, K., & Messersmith, J. G. (2022). The digital transformation of human resource management: A review and future research agenda. Human Resource Management Review, 32(2), 100882.

Schraagen, J. M., van de Ven, J. G. and  Grootjen, M. (2021). AI-driven performance management: Enhancing human resource decision making. Journal of Business Research, 131, 45-57.

Wang, W., & Siau, K. (2021). Artificial intelligence in performance management: The role of AI in HR analytics. Journal of Strategic Information Systems, 30(1), 101641.

Kaplan, A., & Haenlein, M. (2020). Rethinking artificial intelligence in human resources: AI driven performance assessment. Harvard Business Review 98(3), 62-79.

Davenport, T. H., & Ronanki, R. Artificial Intelligence for the real world: The role of AI in HR and performance management. MIT Sloan Management Review, 61(2), 14-23 (2020). 

Brougham, D., & Haar, J. Smart HRM: AI-driven human resource management practices for high-performance organizations. International Journal of Human Resource Management, 32(5), 951-977 (2021).

 

 

Comments

  1. Dilrukshi De SilvaApril 5, 2025 at 12:51 AM

    This article highlights the transformative impact of AI and advanced technologies in modernizing performance management systems. It explores how AI systems provide continuous feedback, reduce bias in evaluations, and optimize employee development through personalized learning pathways. It emphasizes the importance of real-time monitoring, objective assessments, and enhancing employee engagement and well-being, all of which contribute to workforce optimization. The integration of AI with HR functions offers promising benefits, but also raises concerns related to data privacy and employee resistance, which need to be carefully managed.
    How can organizations address employee concerns about data privacy and AI discrimination in performance management systems?

    ReplyDelete

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