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07 Chapter 2

Chapter 2 reviews literature on Human Resource Management (HRM) and the application of Artificial Intelligence (AI) within this field. It discusses the evolution of HRM roles, the significance of recruitment strategies, and the impact of technological advancements, particularly AI, on HR practices. The chapter also explores various definitions and dimensions of AI, highlighting its potential and challenges in enhancing HR functions.

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0% found this document useful (0 votes)
2 views39 pages

07 Chapter 2

Chapter 2 reviews literature on Human Resource Management (HRM) and the application of Artificial Intelligence (AI) within this field. It discusses the evolution of HRM roles, the significance of recruitment strategies, and the impact of technological advancements, particularly AI, on HR practices. The chapter also explores various definitions and dimensions of AI, highlighting its potential and challenges in enhancing HR functions.

Uploaded by

Tushar Kapoor
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

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

the studies those related to the application of Artificial Intelligence in Human

Resource Management. It is an essential part of the scientific research to review the

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

variables can be traced and developed in order to have a fundamental theoretical

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

are Human Resource Management, Recruitment and Selection, Artificial Intelligence

and Artificial Intelligence in Human Resource Management. The following section is

intended to present the abstract of selected studies which are found relevant for the

topic research.

2.2 Human Resource Management

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

residence attached workshops of production shifted to factories employing a large

number of labourers in the factory. From labouring class to human resource, from

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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

and Leonard R. Sayees, 1975).

Megginson (1977) defines Human Resource as “The total knowledge, skills,

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

aptitude of the employees”.

Wendell French (1990) define, “Human Resource management is the

systematic control of a network of inter related processes affecting and involving all

employees of an organization”

Fred E. Schuster (1980) puts that as people management is gaining

momentum, the companies are designing methods and means to discover the

relatively untapped and hidden resources of the company embedded in human

resources. These efforts of these companies, professionals and researchers in the field

have redefined the role and functions of Human Resource Management.

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

surveyed employers reported problems in filling positions because of a lack of talent

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).

The rewards and compensation packages defined by the organizations in the

contemporary times include Basic Pay, incentive pay like Bonus, Commission, Profit

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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

compensation package. Rewards consists of promotion, Lateral move, Task force

assignment, overseas assignments, Cash reward and non – monetary rewards (Vinay

Kamath, 1996).

Human Resources Management has went profound changes as a result of a

diversification of issues related to the human resource function and a strengthening of

its influence in the strategic decision-making processes of companies. The human

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

objective is to help managers achieve a better intergenerational collaboration. Human

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).

Artificial intelligence based on the machine learning technology (Michalski,

et. al, 2013) leads to revolutionize Human Resources Departments at different levels.

Recruitment, training, management of career, mobility, compensation and benefits are

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

Resources Department (Norhaslinda Kamaruddin, [Link], 2018).

2.3 Recruitment and Selection

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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

culture. These talented employees usually outperform other competing companies.

Business establishments show higher profit, higher revenue growth and lower

turnover when they follow a hiring strategy of attracting and selecting employees who

fit the culture and values of the organization (Datta, 2006).

One component of an enterprise talent acquisition strategy is the amount of

financial commitment which makes to attract and recruit new employees. These

investments include advertising agency fees, employee referrals, travel cost of

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.

(Society for Human Resource Management, 2011).

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

supportive human resource metrics. Cost-per-hire has a special attraction for

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

connects recruitment performance to the organization’s bottom line. The process

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

Resource Management, 2011; Society for Human Resource Management, 2007)

Human Resource Management field has been strongly affected by

technological advancements during the last many years, especially the Internet have

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largely impacted the overall functioning of human resource management in

organizational environment. Online recruitment or e-recruitment, has been an

enormous trend in human resource management in the terms of automating the

recruitment process and various human resource tasks such as human resource

appraisal and HR rewards (Dhamija, 2012). Because of a large number of job

applications which emerge especially from the use online recruitment, there has been

discussions about how organizations can manage all of these applications (Reingold,

Baig, Armstrong & Zellner, 2000). In this context exploitation of technology in

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

popular non-traditional recruitment ways to recognize and attract potential job

candidates. Organizations turned to use online recruitment readily, because finding

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

advantages that online recruitment entails, it is important to remember the broad

application of technological advancement in the field of Human Resource Manage. In

addition to electronic job application forms, online recruitment provides several

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

and robots to scan through online applications (Panayotopoulou, Vakola &

Galanaki, 2005).

2.4 Artificial Intelligence

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The Oxford Dictionary defines ‘artificial’ is “something made or produced by

human beings rather than occurring naturally, especially as a copy of something

natural” (Oxford Dictionary, 2019).

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

dimensions in which Artificial Intelligence can be defined by structure, by behaviour,

by capability by function and by principle. These dimensions are defined for

increasing the generality and decreasing the specificity.

Nils J. Nilsson (1998) examines and come into a conclusion that Artificial

Intelligence can be broken up into its components such as Artificial (machine, as

opposed to human) + intelligence. In order to provide the intelligence of an entity,

Nilsson falls back to the Turing Test. He is a believer in the increased complexity of

the machine comes increased the power of intelligence.

James Vincent (2016) puts that one of the difficulties in using the term

artificial intelligence is that it is very tricky to define. In fact, as soon as machines

have conquered a task that formerly done by humans— whether that’s playing chess

or recognizing faces — then it’s no longer considered to be a mark of intelligence

which is termed as “Artificial Intelligence Effect”.

Ben Coppin (2004) comes with a simple definition of Artificial Intelligence.

It is the study of systems that act in a way that, to any observer, would be intelligent.

It is considered as an incomplete definition, since Artificial Intelligence may be used

to solve simple and complex problems which form part of the internal structure of

complex systems. As a result he redefined the term as AI involves using methods

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

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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

or programs which inhabits what could be seen as similar intelligent behaviour as

human being have (Tecuci, 2012; Kaplan, 2016).

Kaplan (2016) notes that his own personal interpretation of intelligence would

be that it is “the ability to make appropriate generalizations in a timely fashion based

on limited data”.

Other definitions of intelligence include it being when something has the

ability to think, plan, have knowledge, adapt to environment or retrieve information

(Legg & Hutter, 2007).

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).

Some of the technological areas connected with Artificial Intelligence which

have been expanded to the areas of robotics, processing of natural language, expert

systems and automated reasoning (Ved et al. 2016).

Ved et al. (2016) noted that there is five different main areas of

implementation of Artificial Intelligence which are (1) interpretation of language, (2)

machine perceptions, (3) problem solving, (4) robotics and (5) games. These findings

are further supported by Tecuci (2012) who have knowledge acquisition, natural

language and robotics as some key areas for Artificial Intelligence.

Nick Bostrom (2005) assesses whether the intersection of Artificial

Intelligence and body-mind augmentations is a threat to human dignity. He finally

sides with the trans-humanists, who believe in the widest possible technological

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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

restricted to the current state of humanity alone – post-human dignity is a definite

possibility.

Jason Borenstein and Yvette Pearson (2010) studied the application of

Artificial Intelligence specifically robots in the field of caregiving. The authors

believe in support of the capabilities approach analysis that the use of robots can

maximize care and freedom for recipients of such care.

Noel Sharkey (2008) and his team are not in favour of utilizing Artificial

Intelligence for care-giving, whether it be the care of children or geriatrics. As regards

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

them provide a mathematical definition of ‘fairness’, and reveals that fairness in

output depends on the interactions between the construct space, observed space and

the decision space of the algorithm.

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

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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

such computational capacity and there would have to be a universal minimum

standard for Artificial Intelligence.

Soderland and Lehnert (1994) come with a novel approach that uses machine

learning to acquire knowledge for some of the higher-level IE processing. It was

revealed that performance equals that of a partially trainable discourse module

requiring manual customisation for each domain.

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

0.80 on the data extraction task.

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

formal framework for incorporating readily available odometric information and

geometrical constraints into both the model and the algorithm that learns them.

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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

locations of a robot in its environment. The work reveals an entirely different

environment from what obtains in the literature. It is definitely a unique contribution

to knowledge. Robots was linked to agent teams in an implementation monitoring

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,

plan and situation, as well as for user preferences.

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

view towards intuition. Hebert Simon made overlapping substantive contributions to

the fields of economics, psychology, cognitive science, Artificial Intelligence,

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

to be mysterious. It was after he supported to create “thinking” machines that Simon

came to understand human intuition as subconscious pattern recognition. In

performing so he showed that intuition need not be associated with magic and

mysticism, which is complementary with analytical thinking.

Alai (2004 ) research centers on whether scientific discovery is a rational and logical

process. If it is, the Artificial Intelligence hypothesis demands that, it should be

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

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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

programme. However the programmes written in the ’Turning tradition’, otherwise

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

from Artificial Intelligence. To go beyond vague platitudes about the importance of a

context in legal reasoning or natural language understanding, one must take account

of ideas from Artificial Intelligence on how to represent context formally. Research

on topics like prior probabilities, the theory-lateness of observation, encyclopaedic

knowledge for disambiguation in language translation and pathology text diagnosis

has produced a body of knowledge on how to represent context in Artificial

Intelligence applications.

The work of, Haynes (2003) reveals the shift from Alchemy to Artificial

Intelligence in western literature. The simplification beneath the contemporary

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

writers and filmmakers’ convenient shorthand, a matrix in which to slot contemporary

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.

Subsequent work on general studies on Artificial Intelligence could be

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

realm of Artificial Intelligence. The second is to contribute to the overall discussion of

the nature of abstraction by providing examples of the abstraction process currently

used in Artificial Intelligence. Although each type of abstraction is specific to a

somewhat narrow context, it is hoped that collectively they illustrate the richness and

variety of abstraction in its fullest sense.

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

and temporal reasoning) and machine learning.

In study by Kim (1995) considers whether Godel’s results preclude the

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

development of the AI field.

The account given by Sivramkrishna and Panigrahi (2003) present the

concept as a tool in development planning which can be added to the general studies

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of Artificial Intelligence. In self-organising map, Kohonen points out that it is a user-

friendly tool for development planners and practitioners to explore patterns in

development. An application with several indicators over 399 Indian districts portrays

the need to study development patterns.

The work also makes clear the versatility of the Kohonen self-organising map

technique in exploring these regional patterns of development. In another paper, the

concept of application of AI in short term electric load forecasting was considered

(Metaxiotis et al., 2003).

Schiaffonati (2003) aims to put the basis of an extended and well-founded

philosophy of AI: it delineates a multi-layered general framework to which different

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

consideration of a type of multiagent system devoted to afford the issue of scientific

discovery both from a conceptual and from a practical point of view.

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

constraints are discussed. Ultimately it is shown that a parameterisation of either the

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

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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

components are supplemented in a theoretical formalism that concludes the work.

In the field of manufacturing, Toni et al. (1996) proposed an artificial, intelligence

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

solutions. The scheduler is applied to a multi-stage production and inventory system,

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

provides a dynamic rescheduling mechanism. It outlines theoretical arguments in

favour of the scheduler and notes practical advantages as a consequence of the

application of the scheduler in a firm, which utilised a traditional dispatching system.

Another well-structured research was carried out by Bhuyanb (2003) on tea

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

(VOC) and non-volatile organic compounds present in tea. Tea flavour is

conventionally measured through the use of a combination of traditional analytical

instrumentation and human organoleptic profiling panels. All these methods are

expensive in terms of time and labour.

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Diez et al. (2002) enquired into an AI approach for improving plant operator

maintenance proficiency. The variable of linkage of construction plant maintenance

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,

fully operational condition.

It is interesting to write that AI has been widely used in many aspects of

human lives. A fine case is presented by Chan et al. (2003). They stated that AI could

be applied to the reduction of environmental pollution, conservation and recycling

since natural resources are significant social and environmental concerns. As good

means for pollution control, they noted that minimisation and mitigation remain

attractive approaches. Moreover, interactive, dynamic and uncertain features are

associated with these processes, resulting in difficulties in their management and

control. Artificial Intelligence is considered as an effective approach for tackling these

complexities. Their study examines the recent advancements of AI-based technologies

for management and control of pollution minimisation and mitigation processes. In

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

application of AI to control and management of pollution minimisation and mitigation

processes were investigated, especially, technologies of expert systems, Fuzzy logic,

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

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discussed, including issues of data availability and reliability, methodology validity,

and system complexity.

Artificial Intelligence in HRM

Ulrich (1997) stated that technology will dramatically affect how and where

work is done, through teleconferencing, telecommuting, and shared data sources.

Proximity was critical when an organisation’s boundaries were geographical. With the

new technology, employees can work at home, in remote locations, or dispersed in

customer offices and still remain connected to the business. Technology has redefined

work time drastically.

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.

Companies Probe possibilities to run HR operations more efficiently. The

combination of the need to work more efficiently on the one hand and the possibilities

of current information and communication technology on the other hand, have

resulted in the swift development of e-HR systems (Stanton and Coovert, 2004;

Fletcher, 2005). The introduction of e-HRM is expected to enhance a more efficient

and strategic way of working for HR professionals (Gardner, Lepak and Bartol,

2003; Shrivastava and Shaw, 2003).

Stuart and Norvig (2016) state that information extraction as a process where

information and knowledge can be gathered by scanning a text, especially in

recruitment of new employees.

AI can be used by information extraction techniques that can make the process

of resume scanning and extraction of relevant information automated (Kaczmarek,

Kowalkiewicz & Piskorski, 2005).

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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

task more efficient (Faliagka, Ramantas, Tsakalidis & Tzimas, 2012).

Candidate ranking system operates at the power of Artificial Intelligence algorithms

and human recruiters providing training data for the AI algorithms, from where they

learn the scoring function of applicants (Faliagka et al. 2012).

Upadhyay and Khandelwal (2018) introduce chat box that are AI-driven

recruitment assistants that enable personal and up-to-date connection possibilities

with candidates through emails, text messages or dialogue box. There are several

computer-supported job matchmaking methodologies that have been developed in

order to ease the workload of recruiting personnels. Such devices include software

that sorts resumes and can be implemented by exploiting learning-based techniques

and algorithms (Montuschi, Gatteschi, Lamberti, Sanna, & Demartini, 2014).

A prominent feature of AI-based ranking systems is the possibility to gather

information about applicants’ personality traits that are extremely important when

fulfilling job positions. These traits are often observed during job interview, however

preliminary data can be acquired through web searches. By conducting linguistic

analysis to applicants’ blog post or LinkedIn pages, it is easy to gather information

about applicants’ personality trails, mood and emotions (Faliagka et al. 2012).

Job interviews conducted as a video interview have become a popular

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).

According to Dickson and Nusair (2010) the objective of recruitment systems

is to ease organizations and save expenditure by reforming their recruitment process.

Recruitment systems are designed to make the recruitment process quicker by

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

speed and efficiency.

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

job interview (Faliagka et al. 2012).

Upadhyay and Khandelwal (2018) remarks that Artificial Intelligence

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

vacancy, Artificial Intelligence systems permits feedback about their qualifications

and skills that these candidates can develop further in the future endeavours.

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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

(Guchait, Ruetzler, Taylor & Toldi, 2013).

Leong (2018), puts as the use of Artificial Intelligence in recruiting enables

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

significantly. In addition to these benefits, AI can support recruiters when it comes to

sending out customized emails to possible job candidates about the current status of

their job requests as well as scheduling interviews.

Upadhyay and Khandelwal (2018) mention that previously repetitive tasks

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

issues. When it comes to connecting to candidates, it can be put that AI systems

facilitate the communication between candidates and recruiters, because AI systems

allows to contact candidates through the web, social channels and mobile platforms.

The Senior Vice President of UnitedHealth Group, Richard Hughes pointed

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

amounts of data can be gathered at an exponentially higher rate with Artificial

Intelligence than humans can wish to accomplish. This data is what drives businesses

in general, not only in the Human Resources department (Owais, 2018)

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

transformation does not manage to become a continuing part of management

decision-making (Rasmussen & Ulrich, 2015).

One notable entirety of challenges that AI-based recruitment entails is

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

own information (Bondarouk & Brewster, 2016).

Martincevic and Kozina (2018) puts it almost impossible for organizations to

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

of new technology entails several benefits when it comes to improved performance.

An remarkable entirety of challenges that AI-based recruitment entails is

unconscious discrimination during hiring processes by organizations (Stuart &

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

some activities that should be conducted by humans, namely activities such as

negotiations, appraisal of cultural fit and rapport building.

Upadhyay and Khandelwal (2018), further put AI systems can be

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

especially minority ethnics groups encounter certain disadvantages when it comes to

gaining access and being employed in the labour market.

Chamberlain (2016) claims that even if there are biases and stereotypes in the

recruitment process, it is significant important to be aware of them and understand

their impact. The author emphasizes that biases can be two-sided, either bias for

something or bias against something. In addition, there is a danger of recruiters who

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

affect recruiters’ decisions.

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

hiring decisions makers. (Bendick & Nunes, 2012).

The development of Human Resource Information System (HRIS) has given a

foundation for Artificial Intelligence application. With the development of human-

computer interaction functions of AI, there is also possibilities for managers to

improve management efficiency by using AI system. “HRIS is a set of procedure for

collecting, storing, maintaining, retrieving and validating data needed by an

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

discussed at length. (HRPA, 2017).

Mondal state that the company used artificial intelligence software to recruit,

with a 71% reduction in recruitment costs and a threefold increase in recruitment

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

scientific appraisal methods, such as 360-degree performance evaluation methods, can

be used more automatically and quickly (Otley, 1999). These assessment methods are

programmed and entered into the decision support system to more effectively count

employee evaluation results.

Compensation management, or salary administration is a dynamic

management process which determines, assigns, and adjusts employee compensation

principles, strategies, levels, structures, and factors that with the guidance of

organizational development strategies (Henderson, 2003).

AI application can assist to facilitate fairness of the compensation

management. BP neural network is a supervised artificial intelligence technology

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

evaluation system with the use of the big data.

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

technologist to apply various principles and techniques of artificial intelligence in the

area of human resource management. Artificial Intelligence can be comfortably used

23
in all dimensions of human resource management including selection and recruitment.

Various studies have been revealed that Artificial Intelligence as a sophisticated

technological tool is largely being used in the IT industry and ITES industry. Various

multinational corporations and big companies have used Artificial Intelligence

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

effectiveness of Artificial Intelligence in recruitment and selection especially in

ADNOC. This presents a research gap. Thus it is imperative to conduct a systematic

research to determine the effectiveness of Artificial Intelligence in recruitment and

selection process in ADNOC. The present study is undertaken to fill this research gap

on the topic entitled “Effectiveness of Artificial Intelligence in Recruitment and

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

resume screening and scheduling interviews. According to Kumar and Dwivedi

(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

algorithms are trained on biased data (Dhar et al., 2021).

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

accordingly. Additionally, AI can provide real-time feedback to employees, making

the learning experience more engaging and effective (Shankar et al., 2021).

However, there are concerns that AI could replace human trainers and reduce the

social interaction necessary for effective learning.

Performance management is a critical function of HRM that involves setting

goals, providing feedback, and evaluating employees' performance. AI can help to

automate some of these tasks and provide more objective and accurate performance

evaluations. For example, AI algorithms can analyze employees' work patterns,

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

human touch necessary for effective performance management.

Employee engagement is critical for organizations to retain their top talent and

improve employee satisfaction. AI can help to improve employee engagement by

providing personalized recommendations for career development and identifying

potential issues before they escalate (Khatib et al., 2020). Additionally, AI-powered

chatbots can provide employees with instant support and assistance, improving the

overall employee experience.

Mohiuddin, M., & Ahad, M. A. R. (2020) on their article titled "Using

artificial intelligence in human resource management: A systematic literature review"

provides a comprehensive review of literature on the use of artificial intelligence (AI)

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.

"Artificial Intelligence and Its Impact on Human Resource Management": This

literature review by Samal and Sharma (2019) explores the potential of AI to

transform HRM practices. The authors discuss the applications of AI in recruitment,

employee engagement, performance management, and learning and development, as

well as the challenges associated with the use of AI in HRM. The review highlights

the need for ethical considerations and careful implementation of AI in HRM.

"Artificial Intelligence in Human Resource Management: A Systematic

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:

recruitment, performance management, training and development, and employee

well-being. They found that AI can enhance HRM practices by increasing efficiency

and accuracy, reducing bias, and improving decision-making. However, they also

highlighted the need for ethical guidelines and human oversight.

"The Dark Side of Artificial Intelligence in HRM": This literature review by

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

displacement of human workers. They suggest that organizations should be mindful of

these risks and implement AI in a responsible and transparent manner.

"Artificial Intelligence in Recruitment and Selection: A Literature Review":

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

judgment and interaction.

"Ethical Issues in Artificial Intelligence and HRM: A Review of the

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

that organizations should develop ethical guidelines and engage in ongoing

monitoring and evaluation of AI systems in HRM.

27
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