Strategic Role of Artificial Intelligence (AI) on Human Resource Management (HR) Employee Performance Evaluation Function

Abstract

Purpose – This research paper aims to create a realistic understanding of the favorable and unfavorable experiences that employees have as a result of adopting artificial intelligence (AI) or resorting to the old manual HR methods. It explains the difficulties and the benefits associated with developing human resources in light of the use of artificial intelligence or the old manual HR methods. Design/Methodology/Approach – For this study, the researcher employed a qualitative and exploratory research methodology. The primary element of the qualitative method which is adjusted to comprehend the literature, theories, motivations, viewpoints, and views in order to answer the study issue is exploratory research. This research used data from secondary sources. Findings – The study found that some firms spend over two million hours annually conducting manual HR performance reviews and evaluations. This is a significant amount of time spent on a process that is unreliable because it relies on people's opinions and prior performance. Real-time Artificial intelligence AI-driven assessments not only enable incentives and praise for good performances immediately, but they also ensure accuracy throughout the entire process and sound an alarm if targets are not met on time or performance standards are declining. From the extensive review of literature, it was found that Artificial Intelligence has a positive and significant influence on HR function of employee performance evaluation. Practical Implications – The study recommends a more robust top-level AI design and implementation within the entrepreneurial ecosystem and a robust application of Artificial Intelligence on HR function of employee performance evaluation. Originality/value – This research makes the unique contribution of establishing a qualitative finding that will revolutionize the entrepreneurial ecosystem for more employee productivity and satisfaction.