DISSERTATION REPORT ON

“ANALYZING THE INTEGRATION OF ARTIFICIAL INTELLIGENCE

IN PERFOMANCE SYSTEMS AND ITS INFLUENCE ON EMPLOYEE
PERFORMANCE”

SUBMITTED TO

VEER MADHO SINGH BHANDARI UTTARAKHAND

TECHNICAL UNIVERSITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

THE AWARD OF
DEGREE OF MASTER OF BUSINESS ADMINISTRATION

Supervised by: Submitted by:

Mrs. Chetna Joshi Himani Upadhyay
(Assistant professor) 20030505012

Faculty of Commerce and Business Management

Amrapali Group of Institute
Shiksha Nagar , Lamachaur
Halwani , Uttarakhand
 DECLARATION

I , here by declare that the research project titled “ANALYZING THE INTEGRATION OF
ARTIFICIAL INTELLIGENCE IN PERFOMANCE SYSTEMS AND ITS INFLUENCE ON

EMPLOYEE PERFORMANCE” is my own original research work and this report has not been

submitted to any university/institute for the award of any professional degree.

Name : Himani Upadhyay

MBA 4th semester
Roll no : 220030505012
AMRAPALI GROUP OF INSTITUTE

ii
 CERTIFICATION

This is to certify that Himani Upadhyay of MBA 4 th semester has successfully completed the
project report entitled “ANALYZING THE INTEGRATION OF ARTIFICIAL INTELLIGENCE IN
PERFOMANCE SYSTEMS AND ITS INFLUENCE ON EMPLOYEE PERFORMANCE ” is prepared

under my guidance and submitted for the award of degree of Master of Business Administration
as per the requirement of Veer Madho Singh Bhandari Uttarakhand Technical University

Signature of project Guide

Mrs. Chetna joshi
(Assistant Professor)

iii
 ACKNOWLEDGEMENT

I take this responsibility to express my profound and sincere gratitude to Amrapali Group of
Institutes for providing me the opportunity to explore the corridors of the corporate world and
gather valuable knowledge and practical experience via dissertation report.
I express my gratitude to my parents and friends who support me through thick and thin
difficulties faced by me during the preparation of the report. I also owe a sense of gratitude to my
internal project guide Mrs. Chetna Joshi , who guided me throughout my report and provided
structured guidelines to work and progress.
Last but not the least , I would like to thank all the employees for their valuable suggestion ,
views and constant encouragement.
The expertise in this study belong to those listed above. Any errors are mine.

iv
SL.NO TOPIC PAGE.NO

 Title Page
 Declaration
(1)
 Certificate 2-5
Preliminary
material  Acknowledgement
 Table of Contents

CHAPTER:1 6-13
 Introduction

CHAPTER:2 16-19
(2) Body of
report  Literature Review

CHAPTER:3
20-25
 Research Methodology

CHAPTER:4 26-36
 Data Analysis and
Interpretation

CHAPTER:5 37-42
• Findings
• Suggestions
• Conclusion

CHAPTER: 6 42-46
(3)  Bibliography
Supplementary
 Annexures
material

v
CHAPTER 1

vi
 Introduction

Artificial Intelligence (AI) has revolutionized Human Resource Management (HRM) by

streamlining processes, enhancing decision-making, and improving employee experience. Here's
a brief overview:
1) Recruitment and Talent Acquisition: AI-powered tools assist in sourcing candidates,
screening resumes, and conducting initial interviews, saving time and resources. These
tools utilize natural language processing (NLP) and machine learning algorithms to
match candidates with job requirements.
2) Candidate Experience: Chatbots provide instant responses to candidate queries, schedule
interviews, and keep candidates informed about their application status, improving
engagement and satisfaction.
3) Onboarding: AI streamlines the onboarding process by automating paperwork, providing
personalized training modules, and guiding new hires through company policies and
procedures.
4) Performance Management: AI analyzes employee performance data to identify patterns,
trends, and areas for improvement. It offers insights into individual and team
performance, facilitating more informed decision-making and feedback sessions.
5) Predictive Analytics: AI predicts employee turnover, identifies flight risks, and suggests
retention strategies by analyzing various data points such as performance metrics,
employee feedback, and external factors.
6) Learning and Development: AI-powered platforms deliver personalized learning
experiences tailored to individual employee needs and preferences. They recommend
relevant courses, resources, and development opportunities to enhance skills and career
growth.
7) Employee Engagement: AI analyzes employee sentiment through surveys, feedback, and
social media to gauge morale and identify issues early on. It also suggests interventions
and initiatives to boost engagement and productivity.
8) HR Analytics and Reporting: AI enables HR professionals to generate insights from vast
amounts of data, helping them make data-driven decisions related to workforce planning,
compensation, diversity, and inclusion.

vii
Impact of AI in performance management and its influence on employee performance
The integration of AI in performance management systems revolutionizes how organizations
evaluate and enhance employee performance. By leveraging AI technologies, businesses can
streamline processes, improve objectivity, and provide personalized support to employees. Here's
a brief overview of how AI integration influences employee performance:
 Objective Evaluation: AI eliminates biases in performance evaluations by analyzing data
objectively, ensuring that employees are assessed based on their actual contributions and
achievements.
 Real-time Feedback: AI-powered systems offer instant feedback, empowering employees
to make immediate adjustments and improve their performance continuously.
 Personalized Development: AI identifies individual strengths and weaknesses, enabling
tailored development plans that address specific needs and career aspirations, fostering
professional growth.
 Skill Gap Identification: AI algorithms pinpoint skill gaps within teams, recommending
relevant training or development opportunities to enhance employee capabilities and
overall performance.
 Enhanced Goal Setting: AI assists in setting realistic and achievable performance goals,
providing clarity and motivation for employees to excel in their roles.
 Recognition and Rewards: AI tracks and analyzes employee achievements transparently,
facilitating fair recognition and rewards, which motivate employees to maintain high
performance levels.
 Predictive Analytics: AI predicts future performance trends, enabling proactive measures
to address potential issues, minimize disruptions, and maximize productivity.
 Reduced Administrative Burden: AI automation streamlines administrative tasks, freeing
up managers to focus on coaching and mentoring, thereby enhancing employee
performance through more effective leadership.
In summary, the integration of AI in performance management systems optimizes processes,
promotes fairness, and empowers employees to reach their full potential, ultimately driving
organizational success.

viii
ix
Importance of performance management system
A performance management system is crucial for organizations to effectively manage, evaluate,
and improve employee performance. Here are some key reasons why it's important:
1) Alignment with Organizational Goals: A performance management system ensures that
individual goals and objectives are aligned with the broader organizational goals. This
alignment helps employees understand their roles in contributing to the organization's
success.
2) Feedback and Development: Regular performance evaluations provide employees with
feedback on their strengths, weaknesses, and areas for improvement. This feedback is
essential for employee development, skill enhancement, and career growth.
3) Identifying High Performers and Areas for Improvement: Through performance
evaluations, managers can identify high-performing employees who may be eligible for
promotions, rewards, or additional responsibilities. Conversely, they can also identify
underperforming employees and provide support or intervention to improve their
performance.
4) Setting Clear Expectations: A performance management system helps in setting clear
expectations regarding job responsibilities, performance standards, and targets. This
clarity reduces ambiguity and helps employees understand what is expected of them.
5) Recognition and Rewards: Performance management systems often include mechanisms
for recognizing and rewarding high performers. This recognition can be in the form of
bonuses, promotions, or other incentives, which motivate employees to continue
performing well.
6) Decision Making and Resource Allocation: Performance data collected through the
system can inform various organizational decisions, such as workforce planning, talent
management, and resource allocation. For example, it can help in identifying areas where
additional training or resources are needed.
7) Engagement and Retention: A fair and transparent performance management system
fosters employee engagement by providing opportunities for growth, recognition, and
development. Engaged employees are more likely to stay with the organization, reducing
turnover and associated costs.
8) Legal and Compliance Requirements: Performance management systems help
organizations ensure compliance with legal and regulatory requirements related to
performance evaluation, feedback, and documentation.

A Robust performance management system is essential for aligning individual and

organizational goals, providing feedback and development opportunities, recognizing and
rewarding employees, making informed decisions, and ensuring legal compliance. It plays a
critical role in driving employee performance, engagement, and organizational success

x
Some major Challenges and concerns:
Addressing challenges and concerns related to AI, including bias, fairness, and transparency, is
crucial for ensuring the ethical and responsible deployment of AI systems in various domains,
including performance management. Here's an exploration of these challenges and concerns:
1. Bias in Data and Algorithms:
Challenge: AI systems learn from historical data, which may contain biases reflecting societal
prejudices or systemic inequalities. As a result, these biases can be perpetuated and amplified by
AI algorithms, leading to unfair outcomes.
Concern: Biased AI algorithms can result in discriminatory decisions, particularly in
performance management, where decisions affect employees' career progression, compensation,
and opportunities for advancement.
2. Fairness and Equity:
Challenge: Ensuring fairness and equity in AI-driven performance management processes is
complex, as different individuals may have unique circumstances, backgrounds, and experiences
that influence their performance.
Concern: Unfair treatment or biased decision-making can undermine trust in the performance
management system and lead to dissatisfaction, demotivation, and even legal implications for the
organization.
3. Transparency and Interpretability:
Challenge: AI algorithms, particularly those based on deep learning techniques, are often opaque
and difficult to interpret. Lack of transparency can make it challenging to understand how
decisions are made and to identify and rectify biases.
Concern: Without transparency, employees may feel distrustful of AI-driven performance
management systems and may question the validity and fairness of the decisions that impact their
careers.
4. Accountability and Responsibility:
Challenge: Assigning accountability for decisions made by AI systems can be challenging,
especially when multiple stakeholders are involved in the development, deployment, and use of
these systems.
Concern: Lack of clear accountability can lead to ambiguity and confusion regarding who is
responsible for addressing issues such as bias, fairness, and transparency in AI-driven
performance management.
5. Ethical Considerations:
Challenge: Ethical considerations, such as privacy, consent, and the unintended consequences of
AI, must be carefully considered in the context of performance management.

xi
Concern: Failure to address ethical concerns can lead to negative outcomes, including
infringement of privacy rights, erosion of employee trust, and reputational damage to the
organization.
6. Mitigation Strategies:
Solution: Implementing mitigation strategies such as algorithmic auditing, diversity in data
collection, algorithmic transparency, and ongoing monitoring and evaluation can help address
challenges related to bias, fairness, and transparency in AI-driven performance management.
Concern: However, implementing these strategies effectively requires collaboration among
stakeholders, including data scientists, HR professionals, ethicists, and regulators, to ensure that
AI systems are developed and deployed responsibly.
Addressing challenges and concerns related to bias, fairness, and transparency in AI-driven
performance management is essential for building trust, promoting equity, and maximizing the
benefits of AI while minimizing its risks and unintended consequences. By adopting ethical
principles, implementing mitigation strategies, and fostering transparency and accountability,
organizations can ensure that AI contributes positively to performance management processes
and supports the development and growth of their workforce.

xii
 Objectives:

 To study the impact of Performance Management system on Employee performance.

 To understand the potential benefits of AI in performance management.
 To analyzes the challenges countered by the HR of the companies.
 To make suggestion for the improvement of existing performance management system.

xiii
CHAPTER 2

xiv
 Literature Review

The emergence of Artificial Intelligence (AI) has been a significant development in the modern
professional landscape. AI has been used to automate and optimize processes, enhance data
analysis and decision-making, and provide insights into customer behavior, among other things.
First, this review will discuss the impact of AI on employee performance. Studies have shown
that AI can improve employee productivity by automating tasks and eliminating tedious manual
tasks. Additionally, AI can help in data analysis and decision making, allowing for more efficient
and accurate decision making (Wang et al., 2022). Furthermore, AI can improve customer service
by providing insights into customer behavior and preferences, which can help employees to
better, serve customers (Hou et al., 2022). Finally, AI can enable employees to be more creative
and innovative in their work, as AI can provide feedback on ideas and help them to develop and
refine innovative solutions. Second, this review will examine the impact of AI on work
commitment (Rejeb et al., 2022).
Research suggests that AI can help create a culture of trust and collaboration within the workplace.
This can lead to a more motivated workforce, as employees are more likely to be committed to
their job when they feel that their work is valued, and their ideas and contributions are taken into
consideration. Additionally, AI can provide employees with more flexibility, as AI-powered tools
can help employees to manage their workloads more effectively and work more efficiently
(Hou et al., 2023).
Finally, artificial intelligence (AI) has the potential to enhance employee engagement through
its ability to offer valuable insights into employee performance and facilitate the provision of
feedback on their work. The research approach employed in this study is qualitative and
interpretive in nature. This study examines the effects of progressing AI systems on management
in the upcoming decade. Additionally, it is suggested that instead of solely replacing tasks,
machine learning tools enhance human decision-making (Schafer et al., 2001). Nevertheless,
supported by empirical data, the expert consensus regarding the influence of AI on management
can be categorized into two distinct groups: revolutionary and evolutionary.
The revolutionary faction maintains that managers' job responsibilities will be impacted
across all levels due to the unforeseen capabilities of AI technology (Khokhar et al., 2022).
Conversely, the evolutionary faction argues that while AI may have various effects on managers
and even replace certain tasks, it will not bring about any unforeseen alterations in their work.
Consequently, the consensus is that Artificial Intelligence can serve as either a tool for creation
or destruction (Fossen et al., 2019). Halting or impeding technological advancement is both
unfeasible and undesirable. However, in order to steer it towards a desired trajectory, competent
leadership is crucial.
A separate study examines the influence of technology on employee behavior and
performance, as well as the stress levels resulting from technology usage. It also explores how
technology affects employees' interpersonal relationships. The study concludes that, overall,

xv
employees express satisfaction with technology and demonstrate a willingness to embrace
new technological advancements without hesitation.
Study conducted by (Manis & Madhavaram, 2023) identified in this research are three key
factors that contribute to AI identity threat in the workplace: changes to work, loss of status
position, and the perception of Artificial Intelligence as a potential threat. The study utilizes
a quantitative approach, employing a research model that includes measurement and structural
analyses. Group differences are also calculated based on the latest considerations during the
model development process. Research has been done that looks at how artificial intelligence
effects. Moreover, the workplace environment Ulta Wilkins (Khaskhelly et al., 2023) studied
artificial intelligence at workplace and qualitative approach has been used which shows that
implementation of AI enhance individual learning and development in workplace to increase
quality and develop and precision leading to higher motivational level however this evidence
contradicts that non AI is equally important to enhance competencies.

Another research was done by (Waseem et al., 2022) which was a comprehensive literature
review on the impact of technology in workplaces with the initial question being on how workplace
affects employees’ motivation. A quantitative approach was used for this study a four-step
procedure was followed where papers were searched that fell under the category of
technology and motivation in general as the result two hundred thousand paper were selected.
These papers were further filtered out and 1451 abstracts were selected and finally 205
useful publications were selected that were related to technology and workplace motivation
and it was concludes that advances in technology paves the way for motivational workplaces
designs leading towards an overall motivated employee cohort (Khokhar, Hou, et al., 2020).
AI has gained significant prominence in the realm of employee engagement and performance,
emerging as a widely discussed subject. Several studies have explored the potential of AI
in enhancing employee engagement and performance. found that AI awareness can influence
career competency and job burnout. built an AI-based employee psychology and performance
analysis model using the analytic hierarchy process. Proposed findings indicate that the
human resource industry has the potential to undergo a transformative change through the
integration of AI. This transformation is expected to occur through the automation of routine
tasks, enhancement of decision-making processes, and improvement of employee engagement
and retention.
(Yumei Hou, 2020) in this study, AI was integrated into a talent management model to elevate
employee engagement and performance. The researchers examined the crucial factors that
contribute to AI's ability to enhance employee engagement in multinational companies.
Furthermore, the researchers examined the effects of AI feedback on employee performance.
Another aspect of the study involved introducing a model that assesses the impact of benign
stress on employee happiness, which subsequently influences employee engagement indirectly.
Moreover, an innovative framework was introduced for an Employee Experience Management
platform powered by AI. This platform aims to tackle strategic human resources (HR)
challenges, including employee engagement, personal and professional development, and job

xvi
satisfaction. Lastly, the researchers investigated the connections between employees' appraisals
of AI as either challenging or hindering and their impact on service performance.
(Akhtar Bhatti et al., 2023) proposals have been made that leveraging AI to reduce employees'
workload can lead to improved company performance in the current volatile, uncertain,
complex, and ambiguous (VUCA) environment. These studies highlight the potential of AI
to positively impact employee engagement and performance through various means, including
the automation of routine tasks, enhanced decision-making capabilities, feedback provision,
workload reduction, and increased employee retention. Nonetheless, additional investigation
is required to delve into the possibilities of AI across various industries and contexts.
finally, found that AI can be used to humanize human resource management by reducing
bias in personnel selection, personalizing training, analyzing the emotional state of employees,
and managing their well-being. In summary, both emotional intelligence and artificial
intelligence have substantial effects on employee performance, retention, and well-being.
Therefore, organizations should prioritize the development of both concepts to attain superior
outcomes.

xvii
CHAPTER 3

xviii
 Research Methodology

1. Research Design:
Purpose: The research aims to explore the influence of AI integration in performance
management systems on employee performance, with a specific focus on the potential biases and
fairness issues.
Type of Study: Mixed-methods research combining quantitative analysis of performance data
and qualitative investigation through surveys, interviews, or case studies.
Scope: The study may focus on a specific industry, organization size, or geographical region to
ensure relevance and manage research scope.

2. Quantitative Methods:
Survey Questionnaire:
 Design a structured questionnaire to collect quantitative data from employees in
organizations using AI in performance management.
 Include questions on demographics, perceptions of AI impact, changes in
motivation/productivity, views on bias, and confidence in fairness.
Sampling:
 Conduct stratified random sampling to ensure representation across different
demographics (age, gender, education, experience).
 Aim for a sample size that provides sufficient statistical power, considering the
complexity of the topic and potential subgroups.
Data Collection:
 Distribute the survey electronically or in person, ensuring confidentiality and anonymity.
 Consider using online survey platforms for ease of data collection and analysis.
Data Analysis:
 Employ descriptive statistics (frequencies, percentages) to analyze demographic data.
 Use inferential statistics: Correlation analysis to explore relationships between variables
(e.g., AI use and perceived impact). Chi-square tests to assess associations between
categorical variables.
 Regression analysis to identify predictors of perceptions of AI impact, bias, and fairness.

xix
3. Qualitative Methods:
Semi-Structured Interviews or Focus Groups:
 Conduct in-depth interviews or focus groups with a subset of participants to gather
qualitative insights.
 Explore themes related to experiences with AI, perceptions of bias, and suggestions for
improvement.
Sampling:
 Use purposive or convenience sampling to select participants for interviews or focus
groups.
 Aim for diversity in roles, experiences, and perspectives within the organization.
Data Collection:
 Record and transcribe interviews or focus group discussions.
 Analyze transcripts using thematic analysis to identify recurring patterns, themes, and
insights.
Tool used for analysis : A sample survey will be conducted among employees, Questionnaire
was used for data collection.
Sample size : 30

xx
 Limitation of the study

 The sample size was small and hence the result can have a degree of variation.
 The study's timeframe may not be long enough to capture the full effects of AI
implementation in performance management systems. Long-term effects may not be
apparent in short-term studies.
 The study may not account for contextual factors such as organizational culture, industry
differences, or variations in AI implementation strategies, which could influence the
results.
 The response of the employee in giving information is based on employee perceptions,
biasness. attitudes, and behaviors towards AI-driven performance management systems.
 External factors beyond the scope of the study, such as changes in the economy or
industry trends, could impact the results but may not be accounted for in the analysis.

xxi
CHAPTER 4

xxii
 Data Analysis and interpretation

What is your age ?

INTERPRETATION

Most of the respondent were found between the age of 18-25 and few are between
26- 35.

xxiii
What is your gender?

INTERPRETATION

52% of the respondent are female while other i.e 48% are male

xxiv
How many year experience do you have in your current organization ?

INTERPRETATION

73% of the respondent have 1-3 years experience , 26% have 4-8 years of
experience.

xxv
Is your organization currently using AI in its performance management system?

INTERPRETATION

73% organization currently using AI in its performance management system and

15% currently not using AI for performance management.

xxvi
If yes, in what area of performance management is AI primarily used?

INTERPRETATION

66% of the respondents feels that AI is used in performance evaluation , 11% give
their vote for goal setting and 11% for Career development planning.

xxvii
On a scale of 1-5, how would you rate the effectiveness of AI in improving the
accuracy of performance evaluation ?

INTERPRETATION

On a scale of 1-5 ,36% of the respondent give 5 rating to the effectiveness of AI in

improving the accuracy of performance evaluation, 26% give 3,4 rating and only
10% give 1 rating.

xxviii
How do you perceive the impact of AI in performance management of individual
performance ?

INTERPRETATION

In the sample we observed that 79% respondent feel that impact of AI in

performance management of individual performance is positive and 21% feels No
significant impact.

xxix
How you noticed any change in your motivation and productivity since the
implementation of AI in performance management?

INTERPRETATION

79% of the employees feels that implementation of AI in performance management

increase the motivation and productivity , 15 % of the employee noticed no change
in the performance of employees.

xxx
Which factors could contribute to bias in AI driven performance evaluation ?

INTERPRETATION

44% of the respondent believe that Socio- economic background is one of the
important factor that contribute to Bias in AI driven performance evaluation , 16%
support Gender and age and 11% vote for race/ ethnicity.

xxxi
Do you believe that AI in performance management has the potential to introduce
bias in evaluations?

2%4%
20%
44%
30%

Strongly agree Agree Neutral Disagree Strongly disagree

INTERPRETATION

44% of the respondent has given their vote against biasness. 20% are strongly
agree and 30% are remain neutral that AI has the potential to introduce bias in
evaluation.

xxxii
How confident are you that AI algorithms used in your organization performance
management system are free from bias?

INTERPRETATION

47% of the respondent are in favour that AI algorithms used in your organization
performance management system are free from bias, 26% are very confident and
26% respondent remain neutral

xxxiii
How do you foresee the role of AI involve in the performance management system in future?

INTERPRETATION

31% respondent feels that the role of AI involve in the performance management
system in future provide the real time feedback and recommendations , 36% has
given their vote for Automating the entire performance evaluation process and
31% vote for both the process.

xxxiv
What improvements or enhancement would you like to see in AI integration for
performance management?

INTERPRETATION

36% of the respondent would like to see Predictive analysis in AI , 26%

respondents wants to improve Personalization factor in AI in future , 21% vote for
Real time feedback and 15% support Bias detectness.

xxxv
What are the main challenges or concern you associate with AI integration in
performance management system?

INTERPRETATION

42% respondent feels that Privacy and data security is the biggest challenge for AI
, 15 % has given their vote for potential bias in AI algorithms and resistance to
change from employee , 26% vote remains neutral.

xxxvi
Is unsatisfactory performance management system directly related to the employee
turnover

6%

17%

47%

18%

12%

Strongly disagree disagree Neutral Agree Strongly agree

INTERPRETATION

Most of the respondent are in favor of that unsatisfaction performance management

system will be led to employee’s turnover, 17% respondent disagree with the fact
and 18% remains neutral.

xxxvii
CHAPTER 5

xxxviii
 Observations/finding

 Most of the respondent age is in between 18- 25 years i.e.74

 Most of the respondent are female i.e.52
 Most of the respondent have 1-3 years of working experience i.e.73
 73% organization currently using AI in its performance management system and 15%
currently not using AI for performance management
 66% of the respondents feels that AI is used in performance evaluation , 11% give their
vote for goal setting and 11% for Career development planning.
 Most of the respondent give 5 rating to AI for employee performance i.e. 36%
 In the sample we observed that 79% respondent feel that impact of AI in performance
management of individual performance is positive and 21% feels No significant impact
 Most of the respondent feels that implementation of AI in performance management
increase the motivation and productivity of employees i.e. 79%
 44% of the respondent believe that Socio- economic background is one of the important
factor that contribute to Bias in AI driven performance evaluation , 16% support Gender
and age and 11% vote for race/ ethnicity
 Most of the respondent has given their vote against biasness i.e. 44%
 47% of the respondent are in favor that AI algorithms used in your organization
performance management system are free from bias, 26% are very confident and 26%
respondent remain neutral
 Most of the respondent feels that the role of AI involve in the performance management
system in future provide the real time feedback i.e. 36% and recommendations , 31% has
given their vote for Automating the entire performance evaluation process.
 36% of the respondent would like to see Predictive analysis in AI , 26% respondents wants
to improve Personalization factor in AI in future , 21% vote for Real time feedback and
15% support Bias detectness.
 Most of the respondent feels that Privacy and data security is the biggest challenge for AI.
 Most of the respondent are in favor of that unsatisfaction performance management system
will be led to employee’s turnover, 17% respondent disagree with the fact and 18% remains
neutral

xxxix
 Suggestions

 Implement AI algorithms to provide instant feedback on employee performance, allowing

for timely adjustments and improvements.
 Utilize AI to analyze performance metrics objectively, reducing bias and subjectivity in the
evaluation process.
 Employ AI to forecast future performance trends based on historical data, enabling
proactive interventions to optimize performance.
 Leverage AI to generate personalized development plans for each employee based on their
strengths, weaknesses, and career goals.
 Utilize AI to identify skill gaps within teams and recommend targeted training programs to
address them effectively.
 Ensure that AI algorithms used in performance management systems adhere to ethical
principles, including fairness, transparency, and privacy protection, to maintain trust and
integrity in the process.
 Utilize AI to identify skill gaps within teams and recommend targeted training programs to
address them effectively.
 Use AI to continuously monitor employee performance metrics, enabling timely
interventions to address issues and capitalize on opportunities.
 Introduction of AI into the workplace can increase employees' skill requirements for
creativity
 Use AI to analyze performance data and identify patterns , trends , and area of
improvement.

xl
 CONCLUSION

In a nutshell, this Report has been an excellent and rewarding experience. I can conclude
that there have been a lot I have learnt , the management aspects of the work I have done
are not flawless and could be improved provided enough time.

As someone with no prior experience in Artificial intelligence whatsoever I believe my

time spent in research and discovering it was well worth it. There’s consensus that
technology enhances efficiency , yet significant portion value the irreplaceable role of AI
in employee’s performance.

Three main things I have learned the importance of Time Management Skills, Self-
motivation & Colleague. I would like to ones again appreciate everyone who has made
dissertation report a, superb experience.

xli
CHAPTER 6

xlii
 BIBILOGRAPHY

 Luhana, K. K., Memon, A. B., & Khan, I. (2023). The Rise of Artificial Intelligence and
Its Influence on Employee Performance and Work. Global Social Sciences
Review,VIII(II), 463- 479, https://doi.org/10.31703/gssr.2023
 AI in Performance Management: Redefining Performance Appraisals in the Digital Age
 Hou et al, AI on future workforce, 2022
 The Role of Artificial Intelligence in Performance Management: A Review and Research
Agenda" by S. S. Sahu et al(2023)
 The Effect of AI on Employee Performance: A Moderated Mediation Model" by Y.
Wang et al(2022).
 A Study of Employee Reactions" by J. M. Stanton et al(2022)

Websites:

1) www.google.com
2) www.en.wikipedia.com
3) www.scribd.com
4) www.enwebworld.com
5) www.researchgate.net

xliii
 ANNEXURES

1) What is your age?

i. 18-25
ii. 26-35
iii. 36-45
iv. 46-55
v. 56 and above
2) What is your gender?
i. Male
ii. Female
3) How many years of experience do you have in your current organization?
i. Less than 1 year
ii. 1-3 years
iii. 4-6 years
iv. 7-10 years
v. More than 10 years
4) Is your organization currently using AI in its performance management system?
i. Yes
ii. No
5) If yes, in what areas of performance management is AI primarily used?
i. Goal setting
ii. Performance evaluations
iii. Feedback delivery
iv. Career development planning
v. Other (please specify)
6) On a scale of 1 to 5, how would you rate the effectiveness of AI in improving the accuracy of
performance evaluations?
1 (Not effective at all)
2 Somewhere Effective
3 Effective
4 (Very effective)

xliv
7) How do you perceive the impact of AI in performance management on your individual
performance?
i. Positive impact
ii. Negative impact
iii. No significant impact
iv. Not applicable (if not using AI)
8) Have you noticed any changes in your motivation or productivity since the implementation of
AI in performance management?
i. Yes, increased motivation/productivity
ii. No change
iii. Decreased motivation/productivity
iv. Not applicable (if not using AI)
10) Do you believe that AI in performance management has the potential to introduce bias in
evaluations?
i. Strongly agree
ii. Agree
iii. Neutral
iv. Disagree
v. Strongly disagree
11) In your opinion, which factors could contribute to bias in AI-driven performance
evaluations? (Select all that apply)
i. Gender
ii. Race/ethnicity
iii. Age
iv. Socio-economic background
v. Disability status
vi. Other (please specify)
12) How confident are you that the AI algorithms used in your organization's performance
management system are free from bias?
i. Very confident
ii. Somewhat confident
iii. Neutral
iv. Not very confident
v. Not confident at all

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13) What are the main challenges or concern you associate with AI Integration in Performance
Management systems?
i. Privacy and data security
ii. Potential biases in AI
iii. Resistance to change from employees
iv. All of the above
14) How do you think AI Integration affects employees motivation and satisfaction?
15) How do you foresee the role of AI involve in the performance management system in
future?
i. Providing real-time feedback and recommendations
ii. Automating the entire performance evaluation process
iii. All of the above
16) What improvements or enhancement would you like to see in AI Integration for performance
management??
i. Personalization
ii. Real time feedback
iii. Predictive analysis
iv. Bias detectness
17) Do you believe that AI in performance management has the potential to introduce bias in
evaluations?
i. Strongly agree
ii. Agree
iii. Neutral
iv. Disagree
v. Strongly disagree

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