View of ANALYZING THE ADVENT OF ARTIFICIAL INTELLIGENCE IN PEOPLE MANAGEMENT

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171 ANALYZING THE ADVENT OF ARTIFICIAL INTELLIGENCE IN PEOPLE MANAGEMENT

Dr. Sonal Sisodia

Principal, Daly College of Business Management, Indore Daksh Sisodia

Research Undergraduate, Indian Institute of Science, Bangalore

Abstract- AI can assist in teaching and learning of skills and digital dexterity, as well as prepare employees for new roles that will undoubtedly require more human skillsets namely analytical, strategic, critical thinking, cultural awareness, emotional intelligence among others. HR can use AI for overall engagement and enable higher productive conversations so as to improve employee experience, retention and performance. This paper reiterates the growing popularity of Artificial Intelligence as a technology that is defining new-age paradigms of operating business automation and accomplishing most of the low - value HR functions so that the larger focus can be driven to the strategic scope of work. The paper explores if AI technology can be applied across different functions to improve efficiency and productivity of firms. It analyses if AI can be more effective than traditional recruitment methods in talent acquisition and also aims at understanding perception of AI being as cost effective as the manual HR processes. Focus is also on analysing the statistical difference in perception of AI based on gender.

Keywords: Artificial Intelligence, People Management, Industry preference, recruitment, training

1 INTRODUCTION

Artificial Intelligence (AI) is a knowhow that is defining new-age architypes of effective business. It is a tool that can automate and complete maximum of the low-value HR functions so that the bigger focus can be driven to the tactical scope of work. It has the power to transform employee experience manifolds through prompt and precise dispensation of large volumes of data. AI competences can gauge new heights and drive the way we function (Brouwer 2015). Human resource management is the key for the success of any organisation but AI will help the human resource to operate with the help of machine which will reduce their work and help them to concentrate more on other aspects of the organisation.

Human resource management is the way of maintaining people in the organization and it is about dealing with people and their attitudes in the organization, it mainly deals with recruitment, selection, training, development etc.,(Margaret rouse). Linking artificial intelligence with human resource will enhance the process and it create more interest for the employee towards work (Oliver Pickup 2018). It reduces the scope of manual work and paper work and it makes easy for the human resource manager to do the tasks easily, it helps in the sense of like granting leave to employees basing upon the leave request and permissions applied at that time, it provides online services that employees details will be available there and every employee can access from it and automatic scheduling done will be done and results will be provided. In human resource management artificial intelligence have its importance because of its tremendous results and in future definitely it is an emerging trend in every organization and it helps the human resource manager to reduce work load in the organization, it also helps in selecting candidates basing upon their resume and information provided in the resume, so it reduces workload of human resource manager. AI is an emerging trend in every organization. Thus, AI and machine learning are the current buzzwords in present days HR chatbots to work efficiently.

2 LITERATURE REVIEW

Barbara van pay(2018) assert AI is reinventing and that AI solutions for business are met with skepticism as owners are scared of letting a non-human entity handle the procedures of business. Dr Owais Ahmed (2018) stated that it increases the effective working of an organization and reduces the burden of HR managers as it provides personalized employee

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172 experiences. AI plays an important role in it by providing help desk to the employees they can post their queries in it and can get the possible solutions. AI helps to take variation requests such as to grant leaves, etc. Faiyaz Md. Iqbal (2018) says organization can conduct interviews of applicants with the help of some prerecorded questions. Also, AI technology can be used to reduce employees’ turnover in the companies and definitely it will be the key era for managers. Josh Bersin (2018) mentions that AI is used in most of the areas of management and also cautions about the risks that will occur when it is not used properly.

Megan marie butler (2018): In the paper title navigating the hype and impact of AI in HR. AI pays a major role in organizations relating to operations, data generalization that means developing alogorithms basing on some criteria. Through AI it is possible to detect employee reactions like bad behavior etc. Prashant Srivastava (2018) discusses impact of AI on strategic HR decisions making AI plays a important role in human resources management.

Geetha R & Bhanu Sree Reddy D(2018) say that Artificial Intelligence can influence the recruitment strategy.

2.1 Need for Study

As more individual tasks become automatable, jobs are being redefined and re-categorised.

It is clear that automation will result in a massive reclassification and rebalancing of work.

Some sectors and roles, even entire sections of the workforce, will lose out - others will be created. Many HR-professionals are reluctant to embrace this breakthrough technology.

Some feel algorithms can never replace human empathy and intuition. There are doubts about the availability and quality of data and whether AI can add something new to what we already know about the dynamics of the workforce. Nonetheless, it could be argued, and is being argued by some HR leaders (eg. Wood, 2017), that AI offers a real opportunity for HR to make its mark.

2.2 Objectives of Study

1. To understand role of AI in Assisted Intelligence 2. To understand role of AI in Augmented Intelligence 3. To understand role of AI in Autonomous Intelligence

4. To understand the reasons of adopting Artificial intelligence in areas such as talent management, recruitment, human capital management, succession planning, training, performance appraisal and related HR areas

5. To analyze the skepticism against adoption of AI in people management.

3 RESEARCH DESIGN

Research Method is quantitative for this study. Google form was designed as per the objective of our study and the respondents were HR managers of small, medium and large companies. In all, valid 100 responses were considered as sample. The study consisted sample from the Indian companies and multinational companies which are established in India. Convenient and judgement sampling technique has been used to collect the primary data. Sample selection of the companies was based on the turnover as well as employee strength of the company.

3.1 Data Analysis

1. Role of AI in Assisted Intelligence

It tested respondents judgment on whether AI can improve what people and organisations are doing by automating repetitive, standardised and time-consuming tasks and providing assisted intelligence as in chat bots. Most managers felt comfortable with adoption of AI in this field.

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173 2. Role of AI in Augmented Intelligence

This emerging technology brings a fundamental change in the nature of work by enabling man and machine to make decisions together. It makes do things one couldn’t otherwise do. There was a mixed response in this case.

3. Role of AI in Autonomous intelligence:

This tested the most advanced form of technologies relying on AI, establishing machines that act on their own and reach out to the subconscious level of information. Results show that not many HR managers favour this.

Role of AI in assisted Intelligence

Very high Average Insignificant

20

56 1.40

Role of AI in augmented Intelligence

9

16 1.40

Role of AI in Autonomous Intelligence

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174 4. Role of AI in Talent Acquisition-

Using AI, the HR managers thought they could remove a lot of stressful and monotonous work generally performed by them in the form of talent.

5. Role of AI in Succession Planning

A good number of HR managers responded that they can predict the future turnover rates, reduced (or increased) employee engagement levels, concerns about internal employee communications, project completion problems, and any other unexpected hidden issues that would usually take years to surface.

6. Role of AI in Training-

Results reveal that with rapid technological changes happening almost every day, it is important that all employees are aware of the day-to-day improvements made in the organisations therefore, a key to keep learning and improving professional skills can be in the form of training facility. AI can successfully plan, organize, and coordinate training programs for all staff members. Online courses and digital classrooms are the most common solutions in that regard. But this is not the only job of AI because it also determines the best timeframe for new courses and schedules lessons so as to fit the preferences of all employees individually.

46 34

1.40

Role of AI in talent acquisition

Upto great extent average insignificant

12

47 1.40

Role of AI in succession planning

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175 7. Role of AI in Performance appraisal-

Managers said that it is easier to monitor employee behaviour and analyse key performance indicators. Using AI, HR managers said they were able to set concrete objectives and let all units work in smaller increments. This type of work is easier to follow and assess and it generates better overall results.

8. Role of AI in Retention-

Respondents revealed that AI has the ability to analyze and predict the needs of staff members. Some said AI has the ability to determine individual affinities and reveal the performances of every employee and justice can be done to those hardworking employees.

31 36 1.40

Role of AI in training

20

47 1.40

Role of AI in Performance Appraisal

27 15

1.40

Role of AI in Retention

Very high Averaage Insignificant

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176 9. Role of AI in Human Capital Management-

Results show that AI can enable HCM which is focused on the organizational need to provide specific competencies and are implemented in three categories: workforce acquisition, workforce management and workforce optimization.

10. Acceptance of AI by employees and customers

Respondents were asked how acceptable is to applicants, employees, contractors the use of AI will be. Will Managers and their staff welcome faster and more accurate HR processes, will they value better-quality data on which to make decisions, will they get used to robotics systems making suggestions etc. Results revealed that most were ready for AI in lower order HR needs of organization.

11. Role of AI in Organisational Adaptation

Once the employee is taken on board, the HR managers need to look into various other aspects of the employee. Adaptation is the second step in the process as many prospects can’t fit in the new environment due to lack of onboarding procedures. Namely, new employees demand a lot of attention and it is often impossible to dedicate enough time to each one of them.That’s where AI steps in – it determines customized onboarding procedures for every single position. This proved to be extremely productive in practice since new workers who went through well-planned onboarding programs had much higher retention rates than their peers who didn’t have the same opportunity

28 36 1.40

AI in Human Capital Mgmt

32

51

1.4 0

Acceptance of AI by employees and customers

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177 4 CONCLUSIONS

While organizations are adopting AI into their human resources processes at varying rates, it is clear to see that the technology will have a lasting impact on the field as it becomes more widely accepted. For this reason, it is important that HR professionals prepare themselves for these changes by understanding what the technology is and how it is applied across various functions.Being the most complex, handcrafted and data-dependent business process, HR must rethink its added value and license to operate. The judgment calls of the human professional are, and always will be, decisive in people management. But AI will provide more time, more capacity, more budget space and better information to do so.Recruitment is perhaps the area which has been most transformed by technology.

AI is seen facilitating in recruitment process by conducting CV screening, sending automated messages and helping reference checks. Above all, Machines were observed to perform better then HR team by reducing the attrition rate and improving talent retention.

AI is seen successful carrying out simple activities of HR but how far it can take up complex issues of HR is yet to see.

Equipping a recruiter with AI faculties and familiarizing him/her with cognitive solutions will enable them to work faster, limit time spent on administrative tasks, and give them more informed access to larger pools of high potential recruits. AI-equipped managers will be able to make better predictions for performance success while focusing fully on the core of recruiting – building and nurturing relationships.

With the innumerable advantages that AI can offer it is always important to cater in the proficiency of the tech professionals- with its efficient application and an apt balance between human management and technology progressive evolution is ensured.

Another development will be seen in cases AI will substitute human in labour tasks, giving them space to generate value and become specialist. With machine costing less and performing better than certain human resources. This will allow companies to change and diversify their investment. Artificial intelligence and machine learning can solve your problem, make your HR smart and efficient, make HR digital. It flawlessly connects to your existing human capital management systems through open API’s, retrieve relevant data to perform the analysis and provide user friendly information to the desired aggrieved accuracy you want. AI has it presence in recruitment and predictive analysis. AI is observed replacing routine tasks in recruitment with least interference by humans.

Employee interaction with HR may be radically changed by AI. Chatboxes can successfully replace humans in call centres, assuming they are not simple wordrecognition programmes and have learning capacity such that they can handle progressively more- complex tasks as they ‘learn’ more, but also to know when to hand over to a human when the question is beyond their capability to answer.

Role of AI in organisational adaptation

very high Average insignificant

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178 With the kind of benefit AI accrues to organisations, human resources professionals need to start embracing today, so they can be prepared to embrace the incredible advancements in artificial intelligence of tomorrow. Transparency will be essential in making sure that employees trust the new technology.More importantly, AI also helps in solving some of the most critical challenges faced by HR people today i.e. creating and executing strategies for improvement, and taking specific actions to tackle these problems well ahead of time. In the words of Jeremy Nunn, A more productive and efficient workplace begins when HR leaders implement numerous layers of AI to deliver more value to their organizations.

There is, furthermore, an assumption behind many AI predictions that the new technology will be warmly embraced and lead to early, positive productivity gains.

5 SUGGESTIONS

Points to consider in deploying AI in HR

 Real-time and accurate data is very important for effective AI results.

 AI environment is a lot different from other IT environments. It requires specific skills and methodologies for implementation.

 There ought to be clarity and training on knowing the correct patterns to study and act accordingly.

 AI can deliver accurate and unbiased results based on the algorithms and logics fed in the system. Ensure the accuracy of data and always remember, AI will do what you want it to do and will not decide things for you.

REFERENCES

1. Anupam Jauhari (2017) How AI and Machine learning will impact hr practices, December 18th, 2017.

2. Barbara Van pay (2018) How AI is reinventing HR, September 30th, 2018.

3. Edge Admin (2017) Artificial Intelligence in HR,Published in Analytic India Magazine, July 17th,2017.

4. Eva Wislow (2017) Top ways to use artificial intelligence in HR, October 24th, 2017.

5. FaiyazMd.iqbal (2018) Can AI change the way in companies Recruitment, Development, Training and Managing in HR, Published in ISSN(E),2018.

6. Dr Jeremy nunn (2019) Emerging impact of AI on HR, Published in Forebs Technology Council,February 6th,2019.

7. Josh Bersin (2018) Artificial intelligence in HR, June 16th, 2018.

8. Lorenzo Milani, Dariorahmati, Risky neerakbarianti (2017) Exploring the impact of AI on HRM, Published in London school of economics, january 25th, 2017.

9. Megan Marie Butler (2018) Navigating the hype and impact of AI in Hr, December 10th, 2018.

10. Michael Heric (2018) Digital technologies have become essential for HR to engage top talent and add value to the bussiness, October 10th, 2018.

11. Dr Owais Ahmed (2018) AI in HR, Published in North campus, University of Kashmir, 2018.

12. Peter (2018) The impact of AI on Hr function, Published in institute of employement studies, November 2018.

13. Davenport T, Ronanki R (2018).Artificial intelligence for the real world, Harvard Business Review, January-February.