Page 171 - IMDR JOURNAL 2023-24

IMDR’s Journal of Management Development & Research 2023-24

performance management systems are recognized for their ability to provide real-time updates and insights,
aiding in better decision-making and overall organizational performance.

Three key applications of GenAI in performance management are identified:

 Providing Better Feedback: AI helps in composing unbiased and actionable feedback, removing biases
and opinions. It can summarize feedback and mid-year conversations in a structured manner, saving

managers time and providing comprehensive performance summaries.
 Facilitating Ongoing Conversations: GenAI helps managers by providing smart suggestions based on

historical chats, staff objectives, and real-time performance data. This is intended to improve deep
interpersonal relationships and increase managers’ efficiency as coaches.

 Developing Powerful Goals: AI-powered assistants aid employees in writing clear and well-

constructed goals by curating relevant information, including current duties, career aspirations,
manager's goals, and team/business objectives.

The five benefits of AI-driven performance management:

 Reduced Bias: AI helps combat biases, such as regency bias, by providing historical performance data
and guarding against unconscious biases in performance reviews.

 Improved Employee Productivity: AI facilitates personalized feedback and performance insights in
real-time, enhancing employee productivity by providing advice that can be immediately

implemented.
 Increased Fairness and Objectivity: AI leverages feedback across time and place to create a more

objective picture of employee performance, reducing subjective judgments.

 Higher-Quality Human Relationships: By automating administrative tasks, AI allows more time for
meaningful conversations and coaching, improving relationships between managers and employees.

 Greater Organizational Success: AI-driven insights enable better coaching decisions, leading to
increased organizational success as employees focus on areas with the biggest impact

 GenAI presents a powerful opportunity to transform performance management by unlocking the
potential of the workforce through streamlined tasks, summarized information, and increased focus

on one-on-one interactions. (https://www.betterworks.com).

Challenges of AI in Human Resource -

In recent years, employees need a certain set of skills because artificial intelligence is being used in human

resource management. Employees typically find it challenging to adapt, understand, and become proficient
in the use of AI tools and digital technology. Any company's human resources are its most valuable asset, and