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AI in performance management : what are the effects for line managers?

Stroet, Huub P.J. (2020) AI in performance management : what are the effects for line managers?

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Abstract:Purpose: This research is focussed on identifying implications of Artificial Intelligence (AI) usage for performance management activities and assess how the role of line managers changes regarding those activities. To achieve this goal, the benefits and drawbacks of AI usage are presented and applied to the role of line managers. Design: A systematic literature review is performed, which is complemented by three cases, constructed out of semi-structured expert interviews. The literature review aims to form an understanding of AI usage’ implications in performance management. The findings of the expert interviews were combined with those of the literature review to answer the research questions. Findings: Performance management is influenced by AI usage in a way that it becomes more accurate through the use of more current and accurately collected data which is gathered easier, is done more continuously, is less biased, and done with a more pro-active attitude than before AI was implemented. AI implementation enables a transition to where line managers have more time available to coach employees, which in a performance management context, means helping employees to perform to the best of their abilities, and aid them in their development. Research limitations: Due to a relatively small number of cases the validity of this research could be questioned. This is however not likely since the presented findings were unanimously confirmed in the cases. Further research could be performed to increase validity, as the found results look very promising for line managers. Theoretical implications: Where current academic literature focusses only on AI implementation effects for HR managers and/or performance management in general, this research presents implications for line managers specifically. Also, a contribution is made to the HR devolution theory, confirming that under the influence of AI usage, responsibilities are transferred to line managers. Practical implications: The results of this research provide line managers, their employees, and HR managers with insight in how AI usage for performance management might look like, and what implications it holds for their functioning.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/77429
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