Reinventing Artificial Intelligence in Human Resource Management

November 10, 2022

The future of human resource management (HRM) relies on the adoption of Artificial Intelligence (AI). AI and Big Data make human resource practitioners’ work less stressful and more productive. However, most business owners have yet to integrate AI into the HRM process. It is unavoidable that human work may hinder human resource functions in any organization due to biased judgment, unfairness in decision-making, and always being based on human emotions.

In a research study conducted by Dr. Walton Wider, Assoc. Prof. Dr. Lee Kar Ling, and Ooi Kai Xin from the Faculty of Business and Communications (FBC) at INTI International University, it was revealed that AI implementation in talent acquisition, human capital development, and performance management has a significant positive effect on organisational performance in Malaysia.

“A bunch of significant work relies on human work in an organization. AI and big data are vital forces to minimise manual analysis and provide recommendations based on facts rather than human emotion,” said Dr. Walton Wider, who is also Head of Programme at INTI International University.

Dr. Walton Wider and his team from the Faculty of Business and Communication (FBC) at INTI International University discovered that the implementation of Artificial Intelligence in talent acquisition, human capital development, and performance management has a significant positive effect on organisational performance in Malaysia.

His research titled “Human Resource Artificial Intelligence Implementation and Organizational Performance in Malaysia” highlighted that the efficiency of completing the HRM process greatly depends on the speed of work. Previous researchers discovered that HRM functions are rarely based in a country like Malaysia, therefore, the need for the adoption of AI in HR as well as potential influences on organisational performance were discussed further. Other than improving the efficiency of the HRM process, it will give new hope for Malaysian companies to gear up to enter the world of HR 4.0.

“Entering HR 4.0 is a game changer for Malaysian companies to compete in the competitive global market. Rather than focusing solely on profitability, the integration of cutting-edge technology could be used to replace unreliable, biased judgments, and unfairness in human work,” said Dr. Walton.

He explained that most Malaysian companies are still unable to embrace HR 4.0 due to a lack of awareness, which will gradually put the companies at stake.

“Organisations strive to organise, streamline, and generate data-driven decisions. With advanced technology, processes such as talent acquisition, performance management, and human capital development will be further automated. Business owners must not delay integrating AI into human resource management and processes,” he said.

When asked about the influence of AI implementation in the human resource process, he said that HR leaders need to address the problem of how people interact with machines at work because failing to use AI in HRM procedures can severely hinder the organization’s expansion.

“The use of AI in HRM processes is now pervasive, and this adoption offers significant, wide-ranging opportunities to enhance HRM operations in terms of hiring, development, performance management, and decision-making,” he added.

His research showed that when hiring new talent, HR professionals will not have to spend tiresome tasks evaluating applications, making calls, or responding to applicants’ emails.

“The usage of AI will facilitate the manual process and send out automatic communications in accordance with the credentials and requirements of the work specified in the system beforehand. It will assist in removing human involvement from the process and produce no human bias,” he added.

Concluding his research, he explained that it is crucial for corporate organizations to take proper action and make wise judgments to address organisational performance issues.

“The talent acquisition process particularly has the biggest influence. However, the difficulties Malaysian businesses experience when attempting to enter Industry 4.0 have proven to be a stumbling block due to a lack of awareness of AI adoption in the HRM process. Malaysian companies will face greater challenges when entering Industry 4.0,” he said.