A Probing: How Artificial Intelligence is Beneficial in Different Fields of Human Resource Management
Dr. Zaleha Mohamad
Senior Lecturer, Faculty of Business,Economy and Social Development, Universiti Malaysia Terengganu, Malaysia
zaleha.m@umt.edu.my
https://orcid.org/0000-0001-5281-8574
Dr. Ruchi Chaudhary
Assistant Professor, Dr. Ambedkar Institute of Management Studies and Research,Nagpur
Dr. Srinivasan Iyer
Associate Professor, Manipal University Jaipur
drsrinivasan0819@gmail.com
https://orcid.org/0000-0002-6186-2603
Sutarto
Faculty of Medicine, University of Lampung, Indonesia
Dr. Sania Khan
Assistant Professor, Human Resource Management Department, College of Business Administration, Prince Sattam Bin Abdulaziz University, Al Kharj, Saudi Arabia
saniakhan05@gmail.com
https://orcid.org/0000-0003-3072-8310
(Corresponding Author)
Abstract
This is essentially brilliant tidings for both Human Resources and the organizations. In most cases, Human Resources is a level apart when it comes to digital transformation, but Artificial Intelligence now gives Human Resources the opportunity to catch up. Artificial Intelligence can aid in the automation of repetitive work, speeding up the hiring process, reducing staff turnover, and improving employee engagement. The computers learn to mimic human behaviour and re-imagine what employees go through. Artificial Intelligence responds quicker in assisting in the extraction of ideas and conclusions that would otherwise require reams of labour or go unnoticed. Considering the emergence of AI in Human Resource Management, this study focuses on the importance of AI in the field of HR. It discusses the trends in HR in the age of AI and the various benefits of AI in Human Resource Management.
Keywords:Artificial Intelligence, Human Resource Management, AI in HR, New trends in HR.
“AI” conventionally refers to a broad class of technologies that allow a computerto perform tasks that normally require human cognition, including decision-making. Ourdiscussion here is narrower, focusing on a sub-class of algorithms within AI that relyprincipally on the increased availability of data for prediction tasks. For certain, therehave been major advances in the domains of pattern recognition and natural languageprocessing (NLP) over the last several years. Deep learning using neural networks has“AI” conventionally refers to a broad class of technologies that allow a computerto perform tasks that normally require human cognition, including decision-making.
The term "artificial intelligence" is used to describe a wide range of innovations that enable a computer to execute activities that would ordinarily need human intellect, such as decision-making. The discussion here is more focused, concentrating on a subset of Artificial Intelligence algorithms that depend heavily on greater data availability for forecasting jobs. Over the past several years, there have undoubtedly been significant advancements in the grounds of formacknowledgmentas well as natural language processing. In certain data-rich environments, machine learning utilising neural systems has become more widespread, taking us nearer to real Artificial Intelligence, which refers to robots' capacity to emulate flexible decision-making processes[1]. Nonetheless, few firms have even reached the big data stage when it comes to staff management, in which the prospect of more intelligent judgments has been publicly and repeatedly proclaimed. Merely 22percent of the total companies claim they've used statistics in human resources, and it's unclear how advanced the insights are in those companies. In industries like marketing, though, the potential of data analytics is more readily apparent. Although there are numerous issues to be addressed there, they are usually characterised by their skill and understanding, like who buys a commodity and how modifications in its presentation affect sales. The consequences are readily quantifiable and are often gathered digitally as an aspect of the sales procedure. The quantity of observations – sales of a single item throughout the nation over time, for example – is quite enormous, allowing for the use of big data approaches. While branding has its ethical dilemmas, the premise that businesses should aim to sell more of their goods, as well as the idea that businesses would try to persuade consumers to purchase more, is widely accepted. The use of AI to HRmatters brings a variety of hurdles. They vary from the applied to the philosophical, like the truth that the aspect of data science analysis when given to humans’ clashes with the parameters that societies normally consider relevant when making significant judgments about persons.
They are considering the need for an algorithm to forecast who to recruit to show these problems. Machine learning methods would be used to construct an algorithm based on workers' qualities, including their ability to do the job in the present workforce, as is customary in challenges like these. We may not believe an algorithm that suggests employing more white guys, even if we could show a causal link between sex and work performance. Since job performance may be a skewed indication, the characteristics of today's workforce may be warped by how we recruited in the past and acting on it would present significant challenges for us in terms of both the judicial process and societal standards[2]. In 2018, Amazon learned that their recruiting algorithm had precisely this issue for exactly this reason, and as a consequence, the business shut it down. Even though applicants' gender was not a criterion, characteristics connected with female candidates, including such "Women's Studies" programs, prompted them to be ruled out. Assuming one instead design an algorithm based on a more objective metric, such as who is fired for bad performance, the number of such incidents in a normal organisation is much too tiny for an algorithm to be useful. Furthermore, if candidates learn about our recruiting algorithm's content, they are likely to react differently in interviews, rendering the algorithm useless. At each step of what we call the Artificial Intelligence Life Cycle, we handle each of these difficulties individually: Operations – Data Generation – Machine Learning – Decision-making.
Figure 1. The life cycle of an Artificial Intelligence-assisted Human Resource practice
2.1 Talent Acquisition Process (TA)
2.2 Onboarding of New Recruits
2.3 Learning and Training programs
2.4 Phrenic Support for Decision Making
2.5 Leadership
2.6 Directorial Tasks
As HR professionals concentrate on improving the blend of human and computerized labour, the prospect of Human resource management is both digital and human. This has resulted in new Human resourceimportance: executives and teams must become fluent in while reimagining AI Human resources to be more human, personal, as well as intuitive. Work and employees as we know them will be transformed in 2019 by a mix of artificial intelligence and human intelligence. As we approached 2019, 10 HR trends that executives should be aware of:
3.1 The ApplicantInvolvement is enhanced by Artificial Intelligence and Human Intelligence
Many firms' initial Artificial Intelligence trials are in aptitudeattainment, as wherever they perceive large, quantifiable, and quick gains in decreasing time to hire, improving employer efficiency, as well as providing a smooth, informal, and instinctive applicant journey.
DBS Bank in Singapore, for instance, was managed to:
Whenever it comes to engaging effectively with culture and values in the recruitment procedure, most hiring managers overlook the significance and labour needed. It isn't that simple. The best case scenario is when you bring up the topic during an interview but don't actually secure a deep analytic congruence between the candidate's beliefs and the corporation's. Thankfully, new HR technology is on the horizon, allowing for a more professional attitude to this critical problem, not through obviating human contact, but by facilitating human decision-making during the hiring procedure[6]. Indeed, bringing this critical issue up as soon as feasible, particularly during the selection process. It all comes down to finding the appropriate applicant for the job and the right organisation for the job. It's the ideal fit.
3.2 Particularly Human Abilities Will Become Increasingly Important
As per the “World Economic Forum's Future of Jobs Report”, the requirement for distinctively human skills will increase. According to the WEF, AI will replace 74.9 million present professions as it takes over increasingly mundane elements of employment.
Nevertheless, 133 million additional professions will be produced, necessitating emotional intelligence as well as technical knowledge, such as technology design and implementation.
Table 1: Illustrates the Skills Requirement in 2018 and what it is expected to be in 2022.
|
Today, 2018 |
Trending, 2022 |
|
1. Critical thinking and analysis |
1. Creativity, originality, and initiative |
|
2. Active learning and earning strategies |
2. Technology design and programming |
|
3. Analytical thinking and innovation |
3. Analytical thinking and information |
|
4. Creativity, originality, and initiative |
4. Critical thinking and analysis |
|
5. Complex problem-solving |
5. Active learning and learning strategies |
|
6. Attention to detail, trustworthiness |
6. Complex problem-solving |
|
7. Reasoning, problem-solving, and creativity |
7. Emotional intelligence |
|
8. Coordination and time management |
8. Systems analysis and evaluation |
|
9. Emotional intelligence |
9. Leadership and social influence |
|
10. Leadership and social influence |
10. Reasoning, problem-solving, and creativity |
According to scientific polls, firms' success factors will progressively rely on human capital as well as the capacity to establish and sustain a solid organisational basis, in addition to the increased effect of technology in organisations. To develop your team and company, start emphasising character, beliefs, and cultural qualities in addition to talents. You will be able to address new needs triggered by altering and developing new technologies, which will significantly influence your competitive advantage[7]. Individuals, organisational, and team foundations will become even more critical in gaining a competitive advantage, but in a different context. Staying ahead will require concentrating on a solid individual basis, including matching character, beliefs, and culture choices.
3.3 AI Won't Take Away Employment; Instead, It Will Aid People In Doing Their Jobs Better
AI, according to Gartner, will generate more employment than it will remove. In 2019, the emphasis will be on determining ways to employ AI to assist workers in doing their tasks more effectively. According to PwC, 20percent of executives at U.S. organisations with AI efforts want to roll out Artificial intelligence through their entire company this year, and also they anticipate Artificial Intelligence investment to reimagine employment and toilprocedureswhereas also increasing effectiveness and profits.
This is already occurring for Human resource professionals. Oracle and Future Workplace undertook an Artificial intelligence At Work study with 600 HR executives to explore how Artificial intelligence is being utilised in the office to reinvent the applicant and workersunderstanding.
Figure2: highlights how 600 HR executives responded to the question: Where is Artificial Intelligence Being Used in HR?
Hilton is an excellent instance of a corporation that has reaped additional commercial advantages, including enhancing the variety of their aptitude pool and allowing employers to find a high-performing applicants more quickly. Rather than eliminating the position, Hilton has engaged in upskilling the employer[8]. They are using AI as a device in recruiters' utility belts to assist them in expediting the recruiting procedure while never influencing the ultimate hiring decision.
3.4 Artificial Intelligence (AI) Will Generate New Employment Opportunities
In 2019, C-suite executives will place a high premium on creating new employment as AI becomes more widely used inside firms. Cognizant Technology Solutions' Center for the Future of Work published two publications on the subject: 21 Employment for the Future and 21 Additional Employment for the Future workforce. Over a 10-year period, from 2019 to 2029, these occupations have been arranged from low to high technology.
Figure 3: shows the latest 21 More Prospective Jobs.
It demonstrates how Human Resource will need to assist the future of job roles and change. Without a doubt, the rate of change will accelerate in the next ten years, necessitating the creation of nimble and robust organisational frameworks. HR solutions are designed to enable such changes, allowing HR to concentrate on making procedures more natural and intuitive.
3.5 A Workforce That Is AI-Ready Will Be Essential To A Group's Future Success
According to Gartner, by 2022, one out of every five employees doing non-routine activities will depend on Artificial Intelligence to complete their responsibilities. Because workers rely on AI for job performance, having Artificial Intelligence-ready personnel will be a modest edge.
Upskilling non-Artificial Intelligence personnel to understand how to deal with AI is becoming more vital as we approach 2019, with Artificial Intelligence migrating from employees existing into the office[9]. Five important actions are required to develop an Artificial Intelligence-ready workforce:
This is laying the groundwork for HR to make significant strides in using Human resource technology and, as a result, improve their competitive advantage.
3.6 The trend of hiring people based on their skills is gaining traction
Why are not more firms implementing recruitment based on skill to broaden the aptitude pool? Potential Workforce organised hiring based on skill Hackathon in 2018, whilepeople wondered why werenot more organisations embracing hiring grounded on skill to broaden the flair pool. Instead,relying exclusively on applicants' credentials, hiring based on skill is described as defining particular skills and competence criteria for a position. Nowadays, more FORTUNE 1000 companies are going on record as recruiting people who do not need a college diploma.
Table 2: shows list 15 concerns.
|
Companies that will hire candidates without a college degree as a requirement |
|
Whole Foods |
|
Penguin Random House |
|
Lowe’s |
|
Hilton |
|
Publix |
|
Nordstrom |
|
Home Depot |
|
Chipotle |
|
Costco Wholesale |
|
Star bucks |
|
IBM |
|
Apple |
|
EY(UK) |
|
|
|
Bank of America |
Skills-groundedemploying may begin with a job explanation change besides the elimination of a degree need, but it also requires a shift in mentality regarding where and how a firm acquires talent. What's required is a shift in recruiting managers' and company executives' perspectives in order to source in innovative ways. “MOOCs, coding schools, Boot camps, technical high schools including P-TECH, high schools, job training given at community centers, or even sponsoring a company-wide Hackathon” are just a few of the various approaches to find non-traditional applicants. Educating business stakeholders, recognising benefits and challenges to broadening the talented workforce, as well as developing strategies for both skills-based hiring and academic and understanding mechanisms to train and develop a more diversified employee base are all necessary steps in embracing a skills-based hiring framework, irrespective of industry.
3.7 Professionals Will Trade Funds for a Specific Purpose at Workplace.
Productive work is a personal observation; as per Gallup, people toil an average of 47 hours/week, and 1 in 5 spend over sixty hrs a week. Employees are looking increasingly for gainful work, a company that reflects their beliefs, as well as a friendly and healthy work environment.
In a recent analysis called Purpose and Meaning at Work, 2,285 American professionals from 26 sectors were polled to see how vital it was to have a purpose at work. In reality, employees claimed they'd be ready to give up 23percent of their career earnings in exchange for work that was always relevant to them[10]. As a result, creating more purpose is not just a "nice to have" but rather a professional need. Workers who have a sense of determination are healthier, more efficient, and more hardworking, and they miss fewer days.
Americans who put a greater importance on productive work tend to be in higher-ranking positions, and if they work for a firm that provides meaningful work, they tend to remain longer. Employees who regard work to be very significant are 69 percent less likely to intend to resign in the next 6 months, and their employment tenures are 8 months longer than normal than those who view work to be meaningless.
Like the search for significance in the office becomes more widespread, more Human Resource professionals emphasize the need to express their organisational mission and share their meaning and purpose with their workforce. This entails providing chances to create a common goal and a positive and healthy work culture, ranging from training to training and mentoring.
3.8 Exposure toNormal Sunlight besidesOccupation Advancement Develop As 2InfluentialWorkerAssistances
Jogging desks, sleeping pods, and even taking your dog to work day is among the fads that dominate news items regarding which incentives provide engaging employee engagement. According to a recent poll conducted by my organisation, Future Workplace, titled The Employee Engagement, employees want something much more basic and important to people's needs[11]. We discovered that outdoor natural light as well as glimpses of the outdoors are the most important aspects of the office setting, outranking typical amenities similar onsite cafeterias, exercise facilities, as well asfinest perks like on-site daycare, in a survey of 1,614 North American workers. “The Spheres, an Amazon office in downtown Seattle” that is a managed forest with over 50,000 plants, is an excellent illustration of this. Sun daylight, trees and plants, and healthful activities, according to Amazon's Spheres, lower workerpressure and boost work gratification more than a traditional office structure.
Companies are increasing chances for internal career advancement and optimising the actual atmosphere to enhance employee well-being. Organizations realize the necessity of implementing internal movement and work assignments programs to keep workers engaged and motivated, with more than 7 million vacant positions. Both MasterCard and Intuit place a high value on career guidance and engage in internal promotion and navigation. According to the Wall Street Journal, each firm is the most profitable in its field.
3.9 VR Is RenovatingBusiness Training
Virtual Reality (VR) is being used to teach staff by a rising number of global learning and development chiefs. VR is being used for compliance training, which is one of the fascinating use cases. Verizon is using VR to instruct shop managers on what to do if a heist occurs. Verizon's VP of Global Learning & Development, Lou Tedrick, states, "We've discovered that using virtual reality to successfully mimic learning events that were formerly difficult or unattainable, including such our Retail Store Robbery, is the most effective method to do so. The positive response we have had from our students in these challenging academic situation pieces of training justifies the extra expenditure in VR over a more conventional educational manner."
In conjunction with “Verizon, MasterCard” employs VR technology to assist workers in developing their soft skills and teaching them about traumatic incident, like a workspace lively shooter or a structure fire. “Walmart” is also employing VR to teach 1.2 million workers across 5,000 shops in the United States on different elements of retail management, ranging from produce care to crowd management on Black Friday.
VR drill has definitely evolved from the early usage of VR headgear by the Arizona Cardinals to the creation of VR learning experiences. “Derek Belch, creator of STRIVR, and Scott Schneider, CEO of HTXLabs, both believe that firms should be asking. How can I extensively deploy Artificial Intelligence throughout the organisation?" rather than "What can I utilise Artificial Intelligence for?"
3.10 Human ResourceAction Is Needed: It Needs a Squad to Concoct for the Evolution of Employment
According to “Deloitte Capital” Insights, a fundamental issue for corporate executives is the need to collaborate more thoroughly: functioning as a work of specialists performing in unison. However, three-quarters of such polled claimed that C-level officials deny shared goals or work together. The Chief Human Resource Officer usually emphasizes Human Resource[12], the CIO on IT, the Chief Finance Officer on statistics, and the Chief Marketing Officer on promotion — but in the current scenario, two new C-level companies have emerged: the CDO and the CEO. In the age of Artificial intelligence, it is more vital nowadays for C-level officials to settle on a unified idea as the speed of change increases.
AI has likely to progress efficiency as well as enhance efficiency. Suchknow-howhas a dissolute influence on the HR sector since it permits concerns to track and comprehend their workers' patterns of behaviour. Organizations are currently adopting technological advancements to keep up with the increasingly complicated commercial atmosphere. Take a glance at 5 AI advantages in the Human resource market to see why this technology is so important for corporate success.
4.1 Human Resource becomes more efficient when monotonous duties are automated.
Human Resource personnel may utilise Artificial intelligence to create time-consuming tasks like training new employees, payroll management, as well as personnel attendance, allowing them to focus on more important tasks. AI modernizes Human resource procedures whereas also supporting workers with all aspects of their occupations.
Instead of recruiting new personnel, HR may increase employee efficiency by using automation technology such as AI, Human resource chatbots, and Artificial intelligence robots. It assists them in reorganising their staffing strategies to simulate the workforce of the future and develop more effective recruiting processes.
4.2 HR Chatbot for the Eventual Member of Staff Understanding
Because businesses are worried about retaining top talent, they must give improved employee engagement. Capitalizeon Artificial Intelligence technologies to enhance the whole member of staff engagement cycle, not just the recruiting as well as onboarding measures.
Remember that Human Resourceplays a serious part in developing a healthy work environment. Besides, the practice of sophisticated innovations like Artificial Intelligence helps them attain a healthierworkerinvolvement.
4.3 Employee participation is at an all-time high.
Member of staff participation has been and will continue to be a crucial influence in corporate achievement. Advance employee involvement using Artificial Intelligence todeliver a high volume and standard of products.
Personnel that is motivated are incrediblepossessions to their companies and aid them to attain outstanding organisational accomplishment[13]. They want a more customised approach, and an AI-powered Human resource chatbot is the way to go if you want to boost employee involvement.
4.4 The Hiring Procedure is becomingmore Personal
Constantly reviewing applications and choosing the finestapplicant from a big pool of applicants is a lengthy process. Furthermore, Human Resourcespecialists have a thought-provokingissue in recruiting and upholding top personnel.
Take advantage of AI in the recruitmentprocedure since it permits the HR personnel to get profoundunderstandingsofprospectivecandidates. Develop an AI chatbot so that candidates may engage with it before meeting with employers and receive individualised updates and comments.
4.5 Interactive Training Platform Makes Learning Interesting
The mainstream of workers nowadays isapathetic in conventional educationallines, preferring in its placecommunicating staff drillarrangements. AI has the power to make difficult training modules engaging for workers while also improving their abilities. It makes practice sessions more interesting and relevant[`14].To learn more about how AI may help your company create a better employee engagement, contact Pocket HRMS and schedule a free trial of the Human resource chatbot.
Although general-purpose Artificial Intelligence is still a long way off in any sector of human activity, specialised Artificial Intelligence systems in health care, the automotive industry, advertising, social media, and marketing are progressing at a breakneck pace. Even on the first stage of the Artificial Intelligence Road, judgments assisted by algorithms, much less advancement has been achieved in personnel management problems[15]. Four reasons are identified: the diversity of HR occurrences, data issues from HR processes, impartiality, and legal limits, and employee attitudes to Artificial Intelligencemanagement. HR data should be integrated with accounting and business data to enable a Human resources department to measure its impact on the company's bottom line in monetary terms. Line managers will also need to brush up on their skills. For them, Artificial Intelligence should entail "augmented intelligence," or the careful use of workforce analytics data in decision-making. A Bayesian strategy to regularly revise management ideas with new knowledge is proposed in the literature on evidence-based management. In HR, the need for efficiency and the desire for justice do not always coincide. We expect that this work's theoretical and practical insights will advance Artificial Intelligence-management in Human Resource on both effectiveness and suitability levels.
Acknowledgements
Authors' contributions
All authors contributed toward data analysis, drafting and revising the paper and agreed to be responsible for all the aspects of this work.
Declaration of Conflicts of Interests
Authors declare that they have no conflict of interest.
Consent for Publication
All authors read and aware of publishing the manuscript in Pacific Business Review International
Declarations
Author(s) declare that all works are original and this manuscript has not been published in any other journal.
Reference
