University of Twente Student Theses


AI in performance management: a game-changing development?

Riecken, Hanna (2022) AI in performance management: a game-changing development?

[img] PDF
Abstract:Purpose. Due to current developments in the advancements of artificial intelligence, researchers proposed that using AI-generated feedback will automate activities of performance management and make the process continuous and flexible. This research aimed to find out how the integration of artificial intelligence changes the process of giving feedback to employees and extend academic literature on recent developments within performance management. Design. Due to the explorative nature of the research, a qualitative research design was used. Semi-structured interviews were conducted with two software developers and one employee who is receiving AI-generated feedback. Findings. Artificial intelligence in performance management is still in its development. Currently, the software can collect, analyse and summarize performance data and therefore automates many activities of the performance management process. Compared to traditional methods, the data collection and evaluation are done continuously, and feedback is always available. Moreover, AI adds the new activity of supporting employees with personal growth by suggesting suitable training. Even though AI-generated feedback provides many opportunities, companies often fail to customize the software and managers are lacking the education to use the program well. In the context of this research, sensemaking theory was used to explore how individuals are shaping their perception of this new technology through external opinions. It was found that software developers present the benefits and opportunities of AI to companies, but managers’ perceptions differ immensely from being enthusiastic to being afraid of using artificial intelligence. Conclusion. Including AI in performance management processes leads to a continuous and flexible procedure that can provide objective and accurate performance data. Even though many activities can be automated, a human touch is still required to ensure a reliable and suitable process. Compared to traditional performance management, data collection, evaluation, and review take place permanently and employees receive support for personal growth through AI.
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:
Export this item as:BibTeX
HTML Citation
Reference Manager


Repository Staff Only: item control page