07 Chapter 2
07 Chapter 2
REVIEW OF LITERATURE
2.1 Introduction
This chapter is devoted to present the previous studies related to the Human
Resource Management and Artificial Intelligence and emphasis have been given to
earlier studies in order to get an insight into the research problem. By analysing these
studies the researcher has got an in-depth knowledge regarding the theoretical
background on which the present study has been built-in. The pertinent concepts and
understanding of the subject. As such four areas of study have been brought and
presented in this chapter which are the areas related to the topic of research. The areas
intended to present the abstract of selected studies which are found relevant for the
topic research.
The role of human factor in production process has been transformed since the
economist of classical era. In the factors of production have made visible changes in
the form of change in the nomenclature and in the functional roles. The changed role
of HRM had the great beginning during the Industrial revolution. Industrial revolution
drastically transformed the production and distribution process. From tiny home and
number of labourers in the factory. From labouring class to human resource, from
1
operation to management and from profit to wealth are the new realities of e -
economy. The human resource role is significantly enhancing due to the changing
scenario of the functioning of the enterprise in the global economy (Geroge Strauss
creative abilities, talents and aptitudes of an organisation’s work force as well as the
sum of inherent abilities, acquired knowledge and skills represented by the talents and
systematic control of a network of inter related processes affecting and involving all
employees of an organization”
momentum, the companies are designing methods and means to discover the
resources. These efforts of these companies, professionals and researchers in the field
Kirkland (2007) had made a significant contribution in this area that one of
the most critical challenges for any organization is finding, recruiting, and retaining
talented individuals.
Manpower Survey (Manpower Inc, 2006), reveals that forty percent of the
in their labour markets. The importance has been laid on initiatives that can be put in
place to help organization to retain and nurture the talent (Karthikeyan, 2007).
contemporary times include Basic Pay, incentive pay like Bonus, Commission, Profit
2
sharing Stock options, and Deferred Pay. This Deferred Pay includes Savings plan
and stock repurchase schemes. Facilities and perks such as recreational facilities,
vehicle, subsidized meals, family vacations and holidays, study leave, safety-nets like
medical insurance, Life insurance, Pension and Social security are included in the
assignment, overseas assignments, Cash reward and non – monetary rewards (Vinay
Kamath, 1996).
resource function is moving more and more towards personalizing HR practices at the
contemporary times which take into account the specificities of each target. The
Resources Analysis permits companies to make good use of their employee databases
in order to make the best decisions and enhance their operational performance
(Marr, 2016).
et. al, 2013) leads to revolutionize Human Resources Departments at different levels.
structured in such a way to attract talent and high potential employees. Valuable
methods have been evolved to treat and evaluate nominations as quickly as possible,
check the suitability of the profile and position and predict the candidate's added value
for the company. These changes have given the major challenges of any Human
3
One of the critical management functions in human resource management is
hiring ne talents. Enterprises that consistently bring on new employees with enhanced
knowledge, skills and abilities in consonance with the firm’s overall strategy and
Business establishments show higher profit, higher revenue growth and lower
turnover when they follow a hiring strategy of attracting and selecting employees who
financial commitment which makes to attract and recruit new employees. These
applicants and staff, relocation costs, and recruiter pay and benefits. The metric of the
cost per hire is defined as the sum of these costs divided by the number of hires.
It is a known fact that the cost per hire is an important metric in recruitment.
Human resource professionals consistently rank cost per-hire as one of the top most
recruiters. Unlike many human resource activities that are uneasy to quantify, cost-
per-hire is easy to calculate because external sourcing costs such as online job
postings, agency charges and relocation costs are simple to track. The metric also
implies a direct line of sight between the recruiter’s ability to effectively source
candidates and the resulting savings in cost for the organization. (Society for Human
technological advancements during the last many years, especially the Internet have
4
largely impacted the overall functioning of human resource management in
recruitment process and various human resource tasks such as human resource
applications which emerge especially from the use online recruitment, there has been
discussions about how organizations can manage all of these applications (Reingold,
hiring process has become particularly popular among large companies (Andersson,
2003).
Dhamija (2012) reveals in her studies that e-recruitment is one of the most
potential job candidate through online recruitment is quicker, cheaper as well as more
efficient. One notable disadvantage of using online recruitment is the possibility for
discrimination between internet users and non-internet users. Along with all these
different recruitment aspects. These aspects are announcing available job positions on
the Internet, receiving job applications online and the exploitation of different
electronic recruitment tools. Some of the electronic tools include recruitment banks
Galanaki, 2005).
5
The Oxford Dictionary defines ‘artificial’ is “something made or produced by
Pei Wang (2008) is a scientist in the field of Artificial Intelligence, does not
believe that there is one fixed definition for Artificial Intelligence. He listed five
Nils J. Nilsson (1998) examines and come into a conclusion that Artificial
Nilsson falls back to the Turing Test. He is a believer in the increased complexity of
James Vincent (2016) puts that one of the difficulties in using the term
have conquered a task that formerly done by humans— whether that’s playing chess
It is the study of systems that act in a way that, to any observer, would be intelligent.
to solve simple and complex problems which form part of the internal structure of
based on the intelligent behaviour of humans and other animals to solve complex
problems. As per the opinion of Coppin, the second definition is more useful when
6
considering the difference between strong Artificial Intelligence and weak Artificial
Intelligence.
Another set of people define the term of AI as the creation of robots, machines
Kaplan (2016) notes that his own personal interpretation of intelligence would
on limited data”.
It again could also be the ability to understand data and from that make
decisions based on the data as well as the situation at hand (Ved, Kaundanya &
Panda, 2016).
have been expanded to the areas of robotics, processing of natural language, expert
Ved et al. (2016) noted that there is five different main areas of
machine perceptions, (3) problem solving, (4) robotics and (5) games. These findings
are further supported by Tecuci (2012) who have knowledge acquisition, natural
sides with the trans-humanists, who believe in the widest possible technological
7
choices for the individual, and addresses the concerns of the bio conservatives, who
call for a ban on human augmentation. His basic argument is that dignity is not
possibility.
believe in support of the capabilities approach analysis that the use of robots can
Noel Sharkey (2008) and his team are not in favour of utilizing Artificial
the first one, he notes that severe dysfunction occurs in infants (although the tests
have been conducted only on animals so far) that develop attachments to inanimate
entities. As regards the second one, he put that leaving the elderly in the exclusive
care of machines would deprive them of the human contact that is provided currently
by caregivers.
Friedler et. al. (2016) scrutinised the meaning of a ‘fair algorithm’, borrowing
from the philosophical as well as the computer science community. In their opinion,
bias in algorithmic output stems from the choosing of the ‘feature space’. Both of
output depends on the interactions between the construct space, observed space and
Pavaloiu and Kose (2017) put that while the top-down approach is appealing
at first glance, it possesses inherent biases, the most important one being the data
interpretation bias. For instance, the Artificial Intelligence might indirectly infer if a
8
person is depressed based on her social media feed, which could affect prospective
employment.
Allen et. al., (2005) are of opinion that the top-down approach allows the
designer to tailor ability. At the same time, there would be conflict arising from the
rules encoded and constant pressure to predict and compute outcomes for every
action. It is due to the fact this approach is untenable, very few computers possess
Soderland and Lehnert (1994) come with a novel approach that uses machine
The machine learning literature have been benefited from the study done by
Lerman et al. (2003). Their findings consider the Wrapper maintenance problem
using a machine learning approach. They present an efficient algorithm that learns
structural information about data from positive examples only. The Wrapper
verification system identifies when a wrapper is not extracting correct data, usually
because the Web source has changed its format. They have the capacity to
successfully reinduce the wrappers, obtaining precision and recall values of 0.90 and
Studies on robots have been studied from three dimensions - its navigation,
robot’s localisation and robot’s participation in agent teams. The work that deals with
robot navigation is credited to Shatkay and Kaelbling (2002). The authors describe a
geometrical constraints into both the model and the algorithm that learns them.
9
Fox et al. (1999) give a version of Markov localisation which gives accurate
position estimates and which is tailored towards dynamic environments. The critical
idea to Markov localisation is to maintain a probability density over the space of all
approach used to provide execution assistants (EAs) in two different dynamic, data-
rich, real-world domains to assist human in monitoring team behaviour. The merit of
the approach lies in that it customises monitoring behaviour for each specific task,
Franntz (2003) come with an example in this respect. His focus is the use of
AI as a framework for understanding intuition. His findings show how the overlaps in
Herbert Simon’s work and especially his work on Artificial Intelligence affected his
decision theory, and organisation theory. His work was motivated by the belief that
the human mind, human thinking, decision-making in man, and human creativity need
performing so he showed that intuition need not be associated with magic and
Alai (2004 ) research centers on whether scientific discovery is a rational and logical
possible to write computer programs was able to provide laws or theories; and if such
programmes were written, this would definitely prove the existence of logic of
10
discovery. However, a program written by Simon led group according to this line of
reasoning proved abortive. The program was able to infer famous laws of physics and
chemistry; but having found no new law, it could not be exactly called a discovery
produced new and useful empirical generalisation, but no theoretical discovery. Thus
going in tune with that logical character of the most significant kind of discovery is
difficult.
Franklin (2003) deals with the representation of context with ideas drawn
context in legal reasoning or natural language understanding, one must take account
Intelligence applications.
The work of, Haynes (2003) reveals the shift from Alchemy to Artificial
mythology of knowledge arises from fear of the power change that science entails
leaving many people feeling confused and disempowered. Kit re-emerges in the
media, most often under the name of “Frankenstein”, without any new discovery that
does to threaten social equilibrium. This is not at all a new phenomenon. Earlier
stories about alchemists to films about computer hackers, good scientists are in the
minority, and the number of recurring stereotypes is small. These archetypes provide
scientists and their projects, simplifying the issues. Like a myth, they appear simple
11
but represent complex ideas and suppressed fears, which transcend time, place, and
race.
credited to Holte and Choueiry (2003) and Zucker (2003). They worked on the
abstraction concept in AI. In the case of Holte and Choueiry (2003), contributed in
two ways to the aims of the special issue on abstraction. The first is to show that there
are compelling reasons motivating the use of abstraction in the purely computational
somewhat narrow context, it is hoped that collectively they illustrate the richness and
Zucker (2003) used abstraction to account for the use of various levels of
details in a given representation language or the ability to change from one level to
another while preserving useful properties. Abstraction has been mainly studied in
problem solving, theorem proving, knowledge representation (in particular for spatial
possibility or the impossibility of the AI thesis; and also, what the (possible)
applications or consequences of them are for AI research. He also shows that while
the limitative Godel’s results are shown to preclude neither the possibility nor the
impossibility of AI thesis, they have and will continue to shed significant light on the
concept as a tool in development planning which can be added to the general studies
12
of Artificial Intelligence. In self-organising map, Kohonen points out that it is a user-
development. An application with several indicators over 399 Indian districts portrays
The work also makes clear the versatility of the Kohonen self-organising map
contributions in the field may be traced back. The main point is to underline how in
the same scenario both the role of philosophy on AI and role of AI on philosophy
must be considered. Clearly, this framework is revised and extended in the light of the
Moraga et al. (2003) in their work reviews one particular area of AI, which
roots may be traced back to Multiple-valued Logic: the area of fuzzy control. After a
short introduction based on an experimental scenario, basic cases of fuzzy control are
presented and formally analysed. Their capabilities are mentioned and their
fuzzy sets or the connectives used to express the rules governing a fuzzy controller
allows the use of new optimisation methods to improve the overall performance.
Stefanuk and Zhozhikashvili (2002) reveals in their analytical study that the
production and rules in the way they are used in AI systems is commendable. The put
a new definition for productions which refers to a large number of types of production
13
that may be found in the literature of AI systems. This definition stresses in the most
general way those production components that are important both for theory and for
practice and which for some reasons remained unnoticed by many researchers. These
based production scheduler. This scheduler utilises a hybrid push and pull approach to
scheduling and exploits the expert system technology in order to obtain moderate
managed by make-to-order, with a large variety of incoming orders. The probe for
solution is made in respect of the due-dates and under efficiency constraints. The
work considers order aggregation, both a portfolio and production level which
quality prediction using a tin oxide-based electronic nose with an AI approach. In the
work, the researcher analysed using a metal oxide sensor (MOS) based electronic
nose (EN) five tea samples with different qualities: normally drier month, drier mouth
again over fired, well fermented normal dried in oven, well-fermented over-fired in
oven and under-fermented normal fired in oven. Mostly its taste and smell determine
the flavour of tea, which are determined by hundreds of volatile organic compounds
instrumentation and human organoleptic profiling panels. All these methods are
14
Diez et al. (2002) enquired into an AI approach for improving plant operator
practice and its plant operators are the central focus. Derive from the knowledge that
unlike plant operating within the manufacturing sector, construction plant is seen as
largely dependent upon operator skill and competence to maintain the item in a safe,
human lives. A fine case is presented by Chan et al. (2003). They stated that AI could
since natural resources are significant social and environmental concerns. As good
means for pollution control, they noted that minimisation and mitigation remain
the field of environmental pollution, AI has been used for management and control of
pollution minimisation and mitigation processes. The literature relevant to the topic of
and neural networks, which emerge as the most frequency employed approaches for
realising process control, and are emphasised. The findings not only provide an
overview of the updated progress in the study field but also, more importantly, reveal
perspectives of research for more effective environmental process control through the
AI-aided measures. Several demanding areas for enhanced research efforts are
15
discussed, including issues of data availability and reliability, methodology validity,
Ulrich (1997) stated that technology will dramatically affect how and where
Proximity was critical when an organisation’s boundaries were geographical. With the
customer offices and still remain connected to the business. Technology has redefined
Strohmeier (2007) pointed out that the rapid development of the Internet
during the last decade has also boosted the implementation and application of e-HRM.
combination of the need to work more efficiently on the one hand and the possibilities
resulted in the swift development of e-HR systems (Stanton and Coovert, 2004;
and strategic way of working for HR professionals (Gardner, Lepak and Bartol,
Stuart and Norvig (2016) state that information extraction as a process where
AI can be used by information extraction techniques that can make the process
16
Since the number of job requests have increased and can even overwhelm HR
Departments, automated systems that ranks job candidates have been presented to
speed up the hiring process. Human Resource Department conduct the evaluation of
the received job applications manually in the previous times, hence applicant ranking
systems which can be created with the utilization of AI can make recruiters evaluation
and human recruiters providing training data for the AI algorithms, from where they
Upadhyay and Khandelwal (2018) introduce chat box that are AI-driven
with candidates through emails, text messages or dialogue box. There are several
order to ease the workload of recruiting personnels. Such devices include software
information about applicants’ personality traits that are extremely important when
fulfilling job positions. These traits are often observed during job interview, however
about applicants’ personality trails, mood and emotions (Faliagka et al. 2012).
recruiting tool among corporate bodies. An application for video interviews that use
AI has been formulated by HireVue. In this case AI is able to interpret and analyze
17
applicant’s body language, facial expressions and even his tone of voice. The
application compares the interviewed applicants to the top talent employees in the
company which can be utilised for suggesting the best applicants to recruiters
(HireVue, 2018).
different kinds of functions such as pre-screening and sorting resumes and then
matching these resumes to open job vacancies. This process enhances the managers’
task when it comes to finding qualified job applicants both in the terms of increased
Dickson and Nusair (2010) also found that the use of AI in recruitment
process enables organizations to reach larger candidate pool and there is limited
paperwork to be done. Moreover Artificial Intelligence can skim the data that is
posted on social media and hence it is easy to get access to applicant’s values,
attitudes and personality traits (Upadhyay & Khandelwal, 2018) which were
gathered traditionally on discussed in the job interview time. Hence due to AI systems
it is possible for recruiters to scan job applicants’ personality traits already before a
perform as unbiased and resumes are screened fairly in a way that it provides equal
chance to all applicants. When it comes to candidates who were rejected from the job
and skills that these candidates can develop further in the future endeavours.
18
By conducting traditional face-to-face interviews with potential job applicants,
organizations confront several costs, including the costs of supervisors and managers
who are present during the interviewing and hiring processes. Apart from these
benefits, the decreased amount of manual work in hiring process yield more time to
focus on those potential job candidates who are suitable for available job vacancies
recruiters to relate with the best talent management candidates instantly rather than
spending enormously time and resources on reading and scanning through received
resumes. AI-based recruitment and talent selection has made capable to rank job
candidates and hence to recognize the top-scoring candidates. Leong (2013) name this
process as Resume Scorer and his process saves recruiters time and effort
sending out customized emails to possible job candidates about the current status of
were conducted by human recruiters, but Artificial Intelligence will make some of the
recruitment processes outdated. This in turn allows recruiters to delegate the repetitive
tasks to AI platforms and hence recruiters have more resources to put on strategic
allows to contact candidates through the web, social channels and mobile platforms.
out that the future is going to be centred on the employee experience and taking
engagement down to the individual level. There is no way we can do that on any scale
19
without applying the best that ‘data science’ has to offer. Artificial Intelligence is not
just about giving humans a hand at doing lower-level tasks, but about data. Vast
Intelligence than humans can wish to accomplish. This data is what drives businesses
There are studies conducted stating that new technology and big data makes
HRM more efficient and accurate (Zang& Ye, 2015). There are people who consider
that human resource analytics can be only a transient trend if the technology
personal privacy and the way how data is handled and analyzed. It concerns both HR
professionals as well as online HRM users when it comes to analyzing data or sharing
operate successfully without some level of adaptation of new technologies. The ability
to adapt new technology in organizations determines largely how they are able
achieve their market competitiveness. Various studies have shown that the adaptation
Norvig, 2016).
Stuart and Norvig (2016) have mentioned several problems that exploitation
of AI can cause, such as losing jobs to automation and in some cases AI systems can
be used when there are undesirable ends. What especially relate to recruitment, is the
20
possibility of losing jobs to automation, since there are already many job positions
that have been replaced by AI programs which cause to increase unemployment. Even
though AI-based systems are extremely beneficial at recognizing talent, there are still
programmed to avoid unconscious biases in recruitment process. They argue that skill
shortages are one of the largest challenges in hiring industry, but AI-based programs
have the ability to bypass candidates’ names, gender and age. These are the primary
source of bias.
Beattie and Johnson (2012) added through their study that several large
organizations assured that there are unconscious biases having impact on recruitment
process. There is the possibility that these decisions on recruitment are significantly
influenced by unconscious biases and stereotyping. They also points out that
Chamberlain (2016) claims that even if there are biases and stereotypes in the
their impact. The author emphasizes that biases can be two-sided, either bias for
base their final recommendations about a job applicant on opinions rather than facts.
In some cases it is noted that these final recommendations can be someone else’s
opinions than the recruiter’s and hence it is important to understand how biases can
21
An action plan with a deliberate will with able to control the bias of
recruitment process such as adopting highly structured hiring procedures and trained
organization about its human resources, personnel activities, and organization unit
characteristics” (Kovach & Cathcart, 1999; Lippert & Michael Swiercz, 2005).
The artificial intelligence will further strengthen the business analytic abilities
of the system to provide further references output for decision making. Data mining
methods are also proposed for scanning the e-resumes of the candidates. Expert
systems are proposed to solving the knowledge management in the enterprises. The
controversy on whether Artificial Intelligence can replace the human resources is also
Mondal state that the company used artificial intelligence software to recruit,
efficiency (Denise, 2017). At the same time, there are analysis of resume and job
matching, the system can recommend suitable posts to candidates, especially for some
high-end talents. In this process, Artificial Intelligence has the features of screening
the candidates without prejudice (Hutson, 2017). Face recognition techniques are
used in the examination to determine if the candidate is consistent with the document,
thereby preventing others from taking the test instead of the candidate (Jain & Li,
2011).
22
In performance management, the performance evaluation model can be
embedded into the system with collecting and analysing the information about
employees’ work performance. Utilising the intelligent decision support system, some
be used more automatically and quickly (Otley, 1999). These assessment methods are
programmed and entered into the decision support system to more effectively count
principles, strategies, levels, structures, and factors that with the guidance of
based on bio-sciences like biology, neurology, psychology and statistics. It can imitate
the human brain nervous system, develop a regular computing model, and integrate
multiple neural network nodes (Richard & Lippmann, 1991). BP neural network
system is used to develop an intelligent decision support system to form a fair salary
From the above analysis of the various previous studies conducted for Human
Resource Management, one of its dimensions called the recruitment and selection and
the basic tenants of Artificial Intelligence and its application in Human Resource
Management, the researcher have got the basic theoretical understanding about the
research topic. We can see certain concrete attempt have been made by experts and
23
in all dimensions of human resource management including selection and recruitment.
technological tool is largely being used in the IT industry and ITES industry. Various
technology for recruitment and selection. But a comprehensive scientific study of the
use of Artificial Intelligence in recruitment and selection has not been done especially
in the field of oil industry. However many oil industry utilise the ICT technology in a
larger way but Artificial Intelligence as a tool has not been widely used due to its
inception stage. The oil giant Abu Dhabi national Oil Company have already put in
use Artificial Intelligence for its recruitment and selection along with various other
functions and departments. No serious studies have been yet undertaken to study the
selection process in ADNOC. The present study is undertaken to fill this research gap
Selection Process – A Study with Reference to Abu Dhabi National Oil Company
(ADNOC)”.
Recruiting and selecting the right candidates is one of the most critical tasks
for HRM. AI can help to streamline this process by automating various tasks, such as
(2021), AI-powered recruitment systems can also analyze candidates' social media
profiles and even predict their likelihood of accepting a job offer. However, there are
concerns that AI could perpetuate biases in the recruitment process, particularly if the
24
Employee training and development are essential for organizations to stay
competitive and improve their employees' skills. AI can help to personalize training
programs by analyzing employees' strengths and weaknesses and tailoring the content
the learning experience more engaging and effective (Shankar et al., 2021).
However, there are concerns that AI could replace human trainers and reduce the
automate some of these tasks and provide more objective and accurate performance
communication style, and even facial expressions to provide insights into their
performance (He et al., 2019). However, there are concerns that AI could reduce the
Employee engagement is critical for organizations to retain their top talent and
potential issues before they escalate (Khatib et al., 2020). Additionally, AI-powered
chatbots can provide employees with instant support and assistance, improving the
in human resource management (HRM). The study identifies the potential benefits of
25
AI for HRM, such as enhanced recruitment, selection, and employee engagement.
However, the article also highlights potential challenges and ethical considerations of
AI use in HRM.
well as the challenges associated with the use of AI in HRM. The review highlights
Literature Review": In this study, Guo et al. (2020) conducted a systematic review of
literature on the application of AI in HRM. The authors identified four main themes:
well-being. They found that AI can enhance HRM practices by increasing efficiency
and accuracy, reducing bias, and improving decision-making. However, they also
Saeed and Patel (2020) examines the potential negative consequences of the use of
AI in HRM. The authors discuss the potential for bias, privacy concerns, and the
This study by Lu et al. (2021) focuses specifically on the use of AI in recruitment and
selection. The authors review the literature on AI-powered resume screening, video
26
interviewing, and candidate assessment. They found that AI can improve recruitment
efficiency and reduce bias, but caution that it is not a replacement for human
Literature": This literature review by Kumar and Dwivedi (2021) explores the
ethical implications of AI in HRM. The authors discuss issues such as bias, privacy,
and the responsibility of HR professionals to ensure ethical use of AI. They suggest
27
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