Literature Review

Chapter 2

Literature Review

Introduction:

Background of AI in decision making:

The commercial landscape constantly changes and adapts, and companies must keep up with

modern technologies to stay ahead. Among these technologies, Artificial Intelligence (AI) is a

momentous change for the global Human Resource Management (HRM) industry. By leveraging

AI, companies can optimize their workflows and gain valuable insights that directly impact the

bottom line. As such, AI is quickly becoming an essential tool for companies that want to

maintain a competitive edge (Ancarani et al., 2019). However, the future of human resource

management (HRM) is artificial intelligence (AI), and its significance cannot be ignored. To be

competitive, business and management professionals need to stay up-to-date on the newest

trends and technology. AI may lower expenses, expedite HR procedures, and enhance decision-

making. For this reason, it is critical to consider the advantages AI may provide for HRM

(Chatterjee et al., 2021). Despite the potential advantages, several major hurdles prevent artificial

intelligence (AI) from being fully utilized in human resource management (HRM) in Indonesia

and other Asian countries. The most significant of these difficulties is the lack of people with AI

experience, which makes it difficult to adopt and use AI-based solutions. Additionally, there is

still a shortage of knowledge about the possible benefits of AI in HRM, which hinders its wider

adoption in the area. To fully utilize AI's potential in HRM, coordinated efforts are required to

offer direction and assistance. Businesses stand to gain greatly in terms of productivity,

1
 Literature Review

efficiency, and the improvement of HRM procedures by removing these barriers (Guha et al.,

2021). The integration of AI in human resource management is a transformative measure that

can lead to optimized allocation of resources and enhanced employee productivity (Mikalef et

al., 2021). By leveraging AI capabilities, organizations can effectively streamline their HR

processes. Furthermore, AI can provide valuable insights into workforce metrics, allowing

organizations to make informed decisions that benefit the company. AI has the potential to

revolutionize HR practices, and organizations that fail to embrace these technologies may find

themselves at a disadvantage in today's competitive landscape. Huynh et al. (2020) emphasize

the significance of corporate culture in shaping employees' behavior, interactions, and teamwork

to achieve objectives. He highlights’ how crucial it is to handle cultural differences in the

workplace to help employees realize their full potential. He emphasizes how closely employee

performance is related to the organization's values and objectives, highlighting the need for

efficient HR management to coordinate these elements for the best results. Aycan et al. (1999b)

studied the relationship between organizational culture and HR management that has been

conducted in developing countries, highlighting the importance of harmonizing HR procedures

with corporate culture to improve employee performance, engagement, and overall firm success.

This interaction is crucial for efficient operation and worker well-being.

What an Important AI in modern HRM practices:

Artificial intelligence (AI) is transforming human resource management (HRM) by

streamlining crucial operations like data gathering, recruiting, training, orientation, and

performance evaluations. AI enables HR professionals to increase efficiency and precision,

2
 Literature Review

thereby raising HR operations to new levels. Advances in computer technology have made large-

scale AI research commercially possible, particularly in the development of expert systems

critical to business decision-making (Biliavska & Castanh, 2022).

Challenges and opportunities in adopting AI in HRM:

AI can improve a variety of HRM tasks, including hiring, training, performance

management, and employee engagement. But for AI to be used in HRM effectively, there must

be a clear comprehension of the essential tactics and ideal procedures. Although AI can

completely change HRM procedures, its use must be done so skillfully to reap all of its benefits.

Correct implementation of AI in HRM requires a comprehensive understanding of the major

strategies and best practices used by organizations (Sabil et al., 2023). However, Abdeldayem

and Aldulaimi (2020) analyze the trends and potential of artificial intelligence in human resource

management, concentrating on Bahrain's public sector goals. He claimed that organizations could

reduce implementation costs, prevent potential pitfalls, and effectively integrate AI in HRM by

thoroughly understanding the major strategies and best practices.

Additionally, a deeper comprehension of AI in HRM applications can help firms accomplish

their strategic goals more successfully and efficiently, including raising employee engagement,

productivity, and retention. Organizations can accomplish their strategic goals more successfully

and efficiently by integrating AI into HRM. Businesses may free up HR employees to work on

more strategic duties like creating HR strategy, cultivating employee relationships, and offering

individualized support by leveraging AI to automate repetitive and time-consuming HRM duties

(Zehir et al., 2020). Additionally, firms can increase employee satisfaction and engagement by

3
 Literature Review

implementing AI in HRM. Artificial intelligence (AI) has the potential to enhance employee

engagement by offering timely and specific input, recommendations, and support.

AI may analyze employee data, assist staff in addressing areas of weakness, and enhance

performance to deliver tailored recommendations and feedback. This may provide workers with

a greater sense of support and help them focus on their tasks. Thirdly, AI may assist businesses

in offering individualized employee experiences, which raises worker satisfaction and

engagement. AI-based chatbots, for instance, can offer employees individualized support and

help with tasks like making appointments, giving feedback, and responding to inquiries. This can

increase workers' sense of engagement and worth (Mohan, 2019). AI can also help businesses

streamline HR practices, such as performance management, succession planning, and employee

retention. AI may assist HR teams in identifying areas for improvement and developing targeted

initiatives by evaluating employee data and feedback (Gaur et al., 2019). Businesses can increase

production, efficiency, and competitiveness in the contemporary economy by implementing AI

in HRM. Businesses may improve employee engagement and make better decisions by utilizing

AI technologies. Artificial intelligence (AI) may recognize patterns in employee behavior and

performance using machine learning algorithms, and it can then offer tailored recommendations

to help workers become more productive. AI may assist HR teams in succession planning by

assisting in the identification of high-potential workers and the creation of focused training and

development plans that will position them for future leadership positions. AI may identify

workers who have the abilities and aptitude to thrive in leadership positions and offer them

individualized development opportunities to help them realize their full potential by evaluating

employee data and feedback (Murphy & Riggio, 2003).

4
 Literature Review

Although the extant literature on AI-enabled HRM reports optimistic outcomes, others

argue that for both organizations and employees, AI-enabled HRM has optimistic outcomes.

While AI-enabled HRM has optimistic outcomes, it's important to examine its potential negative

consequences for organizations and employees. According to (Li et al., 2019), companies may

experience high employee turnover, a drop in job satisfaction, a loss of customer satisfaction,

unsustainable expenses, and ultimately a negative impact on the overall performance of the

company. Experts say that incorporating AI into HR management can be difficult because of the

complicated nature of human resources issues, the small size of available data sets, ethical and

regulatory issues, and the possibility of unfavorable employee reactions to data-driven

algorithms. Tambe et al., (2019) highlighted that these constraints raise questions regarding

accountability, justice, and other ethical and legal difficulties. Yet if it is properly considered and

implemented, AI-powered HR management can still benefit businesses.

Impact of AI on HR Processes

1. The impact of AI on decision-making

According to (Tiple, 2020) AI-based decision-making can result in faster and more accurate

conclusions. It is now widely used in our society for everyday decisions like movie and book

recommendations, as well as more significant judgments. Examples include medical diagnosis,

credit risk prediction, and talent shortlisting in recruitment. In 2020, the EU's White Paper on AI

outlined a European strategy to excellence and trust. Researchers such as (Bernhaupt et al., 2017

& Zhou et al., 2021) claimed that AI also has the potential to improve healthcare, agriculture,

and climate change mitigation. Thus, their approach is to improve people's lives while protecting

their rights. Among the AI-informed Human-machine interactions rely heavily on decision-

5
 Literature Review

making tasks, trust, and perceptions of justice. In contrast, (Castelvecchi, 2016) stated that AI

models' black-box design make it difficult for consumers to understand decision-making and

data processing. This lack of transparency poses issues of accountability and trust in AI systems.

Ethical considerations, such as bias and fairness, are critical since AI systems can retain biases

from their training data. Results must be consistent and accurate to build confidence and

reliability in AI decision-making. Despite AI's advantages, human oversight is still required to

uphold ethical standards and provide context. Establishing strong legal frameworks can lead

to the ethical deployment of AI, assuring responsible use while safeguarding data privacy. Real-

world examples in healthcare, banking, and recruitment demonstrate AI's potential benefits and

drawbacks. For responsible development and application of AI decision-making, it is essential to

understand its limitations, such as handling ambiguous input and guaranteeing interpretability.

Theoretical Framework

The theoretical framework supporting this research is essential for directing the investigation, interpreting

results, and drawing insightful conclusions.

Technology Acceptance Model (TAM) Overview –

In my theoretical framework, I used the Technology Acceptance Model (TAM) to investigate

how organizational culture influences HR preparation for AI-based decision-making and

company success. By incorporating TAM into our framework, we may better

understand how organizational culture influences the correlation between HR readiness for AI

and business performance, hence augmenting the effectiveness of AI-driven HR procedures.

6
 Literature Review

Evolution of E-HRM:

According to (Olivas‐Lujan et al., 2007) "ecommerce" was taking the business world by force in

the late 1990s, He noted that this is when the term E-HR or E-HRM was first used. E-HR is also

referred to as virtual HRM, HR intranet, web-based HR, computer-based human resource

management systems (CHRIS), and HR portals (Ruël et al., 2004). E-HRM refers to the use of

Internet technologies to help the HR function within firms. (Voermans & Van Veldhoven, 2007).

E-HR refers to using the Internet and other technologies to execute commercial activities,

including HR management. (Lengnick-Hall & Moritz, 2003).

Technology Acceptance Model:

(Davis, 1985) established the TAM to analyze the factors influencing IT utilization. TAM aimed

to explain computer acceptability across various technologies and user populations in a concise

and theoretically sound manner. TAM, an adaption of Fishbein and Ajzen's Theory of Reasoned

Action (TRA), explains how individuals use workplace systems. According to TAM, perceived

ease of use (PEOU) and perceived usefulness (PU) influence users' attitudes towards using

information systems (IS). TAM posits that usage behavior is influenced by behavioral intention,

which is in turn influenced by attitude toward technology and belief in its ability to improve

performance (PU) (Davis, 1989). TAM aims to identify how external variables affect internal

beliefs, attitudes, intentions, and usage.

The TAM framework can be helpful in understanding how HR professionals view and

use AI technology in the context of AI-based decision-making in HR. The acceptance and

utilization of AI technologies can be greatly influenced by factors such as their perceived ease of

use in integrating them into existing workflows and their perceived value in improving HR

7
 Literature Review

operations, such as performance evaluation and recruitment. Furthermore, company culture,

leadership support, and user training are examples of important external elements that might

have an impact on HR professionals' attitudes and intents about the adoption of AI technologies.

Researchers that use TAM to the study of AI in HR might acquire significant insights into the

factors that enable or limit the adoption of AI-driven decision-making tools. This understanding

can assist organizations in developing targeted strategies to improve user acceptance, such as

providing comprehensive training programs, demonstrating the tangible benefits of AI

applications, and fostering a supportive organizational culture that encourages innovation and

technological adoption.

Conceptual model

Organizational culture

Readiness for AI- Company success

Based decision
making

Development of Hypotheses

H1: There will be a positive impact of HR-readiness for AI-Based decision

making on company success.

AI technologies, including machine learning, deep learning, chatbots, neural networks,

and virtual assistants, are transforming businesses and organizational processes.

8
 Literature Review

(Kuzey et al., 2014). AI has already impacted organizational structures and relationships with

their surroundings. AI creates both a challenge and an opportunity for enterprises, but success

demands a shift in culture, mindset, and capabilities (Di Francesco Marino & Maggi, 2020).

However, Falcone et al. (2007) claimed that Technological advancements are impacting several

industries and services. AI has an ability to enable any firm to achieve the following: Improve

products and services with new features, and improve item suggestion procedures for retail and

other businesses (Kuzey et al., 2014). AI is quickly emerging as a key technology in a number of

industries, including consumer, business, government, and defense. Tractica has found more than

330 applications for AI in 28 different industries, including analytics, language, and vision.

While deep learning-based human perception is projected to be a stronger driver in the long run,

analytics is still a primary engine for AI. By 2025, the yearly income generated by AI software

worldwide is expected to increase from $10.1 billion in 2018 to $126.0 billion (Kirkpatrick,

2024).

H2: There will be a positive impact of Readiness for AI-Based decision

making and organizational culture

Organizational members come from a variety of backgrounds, which influences the

traits and actions of leadership. Organizational culture is therefore seen as the

foundation of any modification and commercial environment (Jalal, 2017). However

(Ehrhart & Schneider, 2016) defined corporate culture as the norms and values that employees

encounter at work. Members' behaviors and adaptations to achieve effective organizational

results are shaped by these norms and values. (Basahel & Alshawi, 2014). Furthermore, how

people of an organization interact with one another and other stakeholders is referred to as

organizational culture (Christopher & Edwinah, 2022)

9
 Literature Review

Al-Zufairi and Alenezi (2021) discovered that, in one academic institution (Kuwait

University), organizational culture and decision-making had a highly beneficial link.

The findings demonstrated that better decision-making enhances the rapport between managers

and staff members. They also said that the growth and production of universities are caused by

these amicable interactions between the two parties.

Similarly, L. Callahan (2014) emphasizes the significant role of organizational culture on

improved decisions in corporate groups where as Fusch and Gillespie (2012) show that when

employees are valued as vital members of the organization, organizational culture improves

decisions and connections amongst them. The findings showed that organizational culture has a

significant impact on decision-making, particularly when there is diversity inside the

organization. This would improve the decision-making process's quality. The findings also

showed that corporate culture fosters better member communication, idea and value exchange,

teamwork, and production (Jalal, 2016). This researchers’ findings also showed that corporate

culture fosters better member communication, idea and value exchange, teamwork, and

production.

H3: There will be a positive impact of organizational culture and company

success

Based on TQM concepts, the idea of business excellence first appeared in the 1980s.

There are scholars who contend that the theoretical basis of business excellence was

management theory (Lu et al., 2011). Models have been created to operationalize the idea of

business excellence and offer a structured implementation method that various businesses can

utilize in parallel with its rise. Various organizations created these business excellence models,

10
 Literature Review

assisted corporations with their adoption, and created excellence award systems to recognize

their achievements (Ringrose, 2013). Businesses that have implemented business excellence

models often have done so by employing strategies, resources, and methods to get the intended

outcomes (Adebanjo, 2001).

The Malcolm Baldrige model in the United States and the EFQM model in Europe are the most

widely used business excellence models (Samuelsson & Nilsson, 2002). The EFQM Excellence

Model is the foundation for over 59% of business excellence models globally, and 80% of them

in Europe (Kassem et al., 2018). This eleven-year study, conducted across Europe, compared

award-winning businesses with similar-sized businesses in the same industry. The findings

demonstrated that winners of awards had better cost reductions, sales growth, and revenues in

addition to bigger increases in share price.

There are nine criteria in the EFQM Model that address outcomes and facilitators. What an

organization does and how it does it are the enablement criteria, and what it does is the outcomes

criteria (Bocoya-Maline et al., 2023).

Five enablers are:

(1) Leadership, which is concerned with how leaders shape and carry out the company's future. It

entails fostering trust, serving as an example of morality and ethics, and emphasizing the need

for leaders to be adaptable enough to support the ongoing success of their companies.

(2) Strategy describes how the business carries out its vision and mission statement and includes

stakeholders in the strategy-development process. The business must show that it uses the right

procedures, policies, and objectives to carry out its plan.

(3) People clarify that businesses ought to be able to create an appropriate corporate culture that

makes it easier for employees to accomplish their professional and personal goals.

11
 Literature Review

Businesses should support justice and fairness and help people develop their skills. To foster

dedication, they ought to look out for, acknowledge, and inspire others.

(4) Partnerships and resources outline how businesses should achieve process effectiveness while

managing their ecological and social impact.

(5) Procedures, goods, and services clarify how exceptional businesses organize, oversee, and

improve their procedures to provide value for customers and other stakeholders.

In conclusion, the use of business excellence models such as the EFQM Excellence

Model highlights the importance of organizational culture in achieving firm success. These

approaches prioritize leadership, strategic alignment, employee involvement, efficient resource

management, and continual process improvement. Companies that follow these principles

outperform their competitors in terms of cost savings, revenue growth, and overall financial

performance, proving the idea that a healthy corporate culture has a substantial impact on

company success.

H4: Organizational culture will moderate the relationship of Readiness for

AI-Based decision making and company success.

In the ever-changing business environment of today, companies are always looking for new and

creative methods to streamline their HR procedures and maintain their competitive edge.

Artificial intelligence (AI) has the ability to significantly improve employee engagement,

overcome resistance to change, and foster creativity in HR decision-making. HR departments

may increase operational efficiency, enhance the quality of decision-making, and extract

insightful knowledge from massive data sets by utilizing AI technologies. But more than just

technological know-how is needed for the effective application of AI in HR; organizational

change management, innovation culture development, and employee buy-in all require a

12
 Literature Review

strategic approach. In light of this, it is critical to address worries about job displacement,

upskilling, and privacy in order to facilitate a seamless transition and optimize the advantages of

AI adoption.

According to (Qamar et al., 2021) numerous AI techniques have been used to HRM in a

variety of firms, significantly modifying HR processes. Expert systems, fuzzy logic, artificial

neural networks, data mining, genetic algorithms, and machine learning are some of the

techniques that have been used in fields such as workforce design, HR planning, hiring, and

human performance management.

Since technologies have advanced and there are now a lot of global web businesses, the culture

of the company grows to incorporate its digital workplace policies (Duerr et al., 2018). This

definition of "digital organizational culture" includes common values, attitudes, and

understandings of how corporate operations are organized in the digital sphere (Deshpande &

Webster, 1989). In the digital setting, the digital organizational culture is incorporated into the

organizational life (Ludolf et al., 2017& Taherdoost, 2018).

In the current era of advanced technology, the concerns surrounding digital organizational

culture have been identified and considered as an integral component of the organization (Müller

et al., 2019). However, because of the internet economy, digital innovation also emerges as a

concept for the company. The ideas of creativity and digital innovation are closely related, as the

former encourages firms to act creatively and apply novel approaches to address current business

issues through the use of newly developed technologies. The definition of innovation has

evolved or been stretched to include digital innovation in the last ten years (Bagnoli et al., 2019).

The use of cutting-edge digital procedures and technology to solve problems with current

business processes, enhance them, or introduce novel business models is known as digital

13
 Literature Review

innovation (Elia et al., 2020). According to the discussion surrounding the relationship between

digital organizational culture and digital innovation as it has been raised in earlier research

(Borda & Bowen, 2019), digital organizational culture significantly predicts the

operations, maintenance, and supply chain efficiency, optimize customer experience, enhance

use of digital technologies, which offer novel approaches and solutions for business processes

through sophisticated business models. Additionally, writers contend that corporate digital

innovation is positively impacted by digital organizational culture (Müller et al., 2019).

Additionally, research indicates that companies with a digital culture are more likely to exhibit

higher levels of digital innovation (Cohen et al., 2017).

Role of organizational culture in AI adoption and company success

Organizational culture has a significant impact on AI adoption and company success. The

adoption of AI technologies in HRM procedures is greatly influenced by organizational culture. It affects

workers' attitudes toward change, perceptions of and adoption of new technology, and capacity for

learning and adaptation. Implementing AI in HRM can be aided or hindered by organizational culture.

Organizations can establish an atmosphere that facilitates the effective incorporation of artificial

intelligence (AI) into HRM procedures by cultivating a culture of innovation, adaptability, and continuous

learning. In today's fast-paced business environment, innovation is key to staying ahead of the

competition. The corporate culture, however, is just as important in determining the success of innovation

adoption as having the appropriate leadership theories in place. Innovation may be hindered by the

organization's underlying values and ideas. An organization can establish an atmosphere that attracts top

people and fosters creativity, leading to greater success and growth, by cultivating a culture that supports

and celebrates innovation (Awa et al., 2017). Organizational support is essential for the deployment of AI.

The organization's support identifies the conditions needed and contributing elements for innovation,

14
 Literature Review

acceptance, and integration. As such, the adoption of AI creates new prospects for the organization's

growth and success as more organizational support becomes accessible.

AI adoption has a deep and far-reaching impact on company success. Companies can improve

decision-making, streamline procedures, and obtain a competitive edge in the market by incorporating AI

technologies into their operations. This transformational technology can transform industries and fuel

unparalleled growth and creativity. Capabilities are acquired by combining and utilizing knowledge

resources, according to the knowledge-based perspective. AI and human mutual learning can be utilized

to pool knowledge resources and repurpose them in novel and creative ways. For instance, Repsol, a

petroleum corporation, employs artificial intelligence (AI) to evaluate millions of data points every day

(for instance, while drilling successful wells) to identify areas for improvement and identify the core

reasons for inefficiency. Experts in human matters either use the suggestions made by the AI system or

provide them back to it for improvement. Managers and AI may learn from and continuously improve

organizational procedures in this kind of partnership (Ransbotham et al., 2020).

AI-enabled organizational learning requires collaboration between humans and machines,

learning from each other over time. Success depends on mutual learning, but the scale is challenging. A

global survey shows most companies pursue AI capabilities but have not seen significant profit increases.

The use of AI continues to rise as more companies realize that it presents both risk and strategic potential.

Only a few companies can demonstrate a substantial financial return on their AI investments, despite the

growing awareness and use of AI technologies. From 46% in 2017 to 57% in 2020, there has been a

significant increase in organizations installing AI solutions. AI-specific strategies are increasingly driving

these initiatives. Compared to 39% in 2017, more than half of respondents (59%) believe they have an AI

strategy (MIT Sloan Management Review, 2020). Even with these developments, only a tiny percentage

of businesses—roughly 1 in 10—can show that their investments in AI have generated significant

financial returns (MIT Sloan Management Review, 2020). According to studies, creating AI solutions that

the company wants and can utilize and having the appropriate skills, technology, and data are insufficient

to produce appreciable financial gains (MIT Sloan Management Review, 2020).

15
 Literature Review

The current state of AI in HRM

According to (Storey, 2004) HRM is a strategy for employee management that aims to give the

company a competitive edge by retaining capable and dedicated staff through various tactics, including

cultural, structural, and human factors.

Human resource management (HRM) is an essential component of any firm. The effectiveness of

a company's personnel determines its performance, and HRM procedures are essential to ensuring that the

best talent is attracted, developed, and managed. The procedure entails several tasks, including hiring,

maintaining current staff, finding new hires, and employee development (Wall & Wood, 2005). HRM

practices are primarily concerned with keeping new hires on board and making sure they are happy in

their roles. This is because human resources are an essential component of any business, and their growth

and productivity depend on competent management. Organizations may develop an engaged and driven

workforce that will propel the company forward by using the proper HRM procedures. Human resource

management (HRM) is hardly an exception to the global revolution that artificial intelligence (AI) has

brought about. Recruitment experts have named the application of AI in HRM and recruiting as one of the

most noteworthy developments of 2018. The deployment of AI in HRM is undoubtedly

transforming the HR landscape. It is empowering organizations to optimize HR processes with

unprecedented efficiency and accuracy, leading to a significant boost in productivity and overall

success. Artificial intelligence (AI) can take over routine activities that human recruiters have historically

completed, freeing them up to concentrate on more crucial work. Artificial Intelligence is causing a lot of

changes in the recruitment sector and might completely disrupt the way HRM is done (Upadhyay &

Khandelwal, 2018).

Change management and Role of HRM:

16
 Literature Review

According to (Schein, 2010) Kurt Lewin is the primary source of "the fundamental

assumptions that supports any change in a human system."

"Unfreeze the organization from its existing state, execute required changes, and refreeze in a

new desired state." (Jones, 2013b). The benefits of the procedures mentioned above include

systematic change management, planning, and mitigating the impact on the company. Employee

resistance to change can severely impact the process and lead to unintended consequences if not

addressed properly. Therefore, (Jones, 2013b) suggests that organizations use various

organizational development (OD) techniques to reduce the negative impact of change, such as

education and communication, participation and empowerment, facilitation and support,

bargaining and negotiation, and coercion. Additionally, counseling, training, and team building

may be used to promote change.

How AI transforms HRM with in organizations:

According to (Danysz et al., 2018), The evolution of economic organization, technological

capability, and social processes has undoubtedly left its mark on human resource management

(HRM) history. One such shift is the growth of artificial intelligence (AI), which broad

consequences, especially for industries like engineering, industrial organization, and human

resource management. Artificial intelligence (AI) holds the potential to enable automated

systems, such as machines, robots, and software, to carry out repetitive jobs that have historically

been completed by people. This indicates that, with particular regard to HRM procedures, a

variety of tasks (such as hiring, performance management, determining pay and benefits, and

offering training and development) may soon experience a significant degree of automation. The

present circumstances have increased the need to acquire new skill sets for interacting with AI-

enabled technologies. As an example, businesses that specialize in enterprise resource planning

17
 Literature Review

(ERP) software have started developing AI modules to automate different company operations.

As a result, the organization using the program needs to hire human employees to either help

design or at least direct the AI algorithm. As a result, businesses have struggled to find personnel

in the HRM domain with sufficient knowledge of human resource (HR) data science to

effectively communicate with the algorithms included into business software (Sakka et al.,

2022). A qualitative study examining the function of human resource management (HRM) in

managing change within organizations was carried out by the researcher (El-Dirani et al., 2020).

In order to better understand how HRM reacts to different change catalysts and the precise

responsibilities HRM plays in this process, the research includes interviewing professionals,

experts, and academicians. The study interviewed 12 individuals from diverse backgrounds,

including HR managers and officers at educational institutions, A human resources manager at a

media organization, HR academic professors, Human resource consultants and professionals,

Representatives from a human resource training institute. The study's goal is to examine the

subject and identify specific variables for future in-depth research. A sample size of 10 to 15

respondents is regarded as adequate for qualitative research, particularly when specialists are

selected.

However, Artificial intelligence has been referred to by a variety of slang phrases,

including "mind machine," "computer intelligence," and "human intelligence emulation." AI is

sometimes defined as "the science and engineering of making intelligent machines," according to

(Carrel, 2019). A wristband is an example of an "intelligent machine," and Amazon has filed two

patents for it. It monitors workers' whereabouts, actions, and tasks at a warehouse. In addition to

recording these statistics, the band can react to the information it receives by vibrating, for

example, if a worker reaches the wrong shelf or discovers that they are in the wrong place. A

18
 Literature Review

device such as this one seeks to increase worker efficacy and reduce average error to increase

overall productivity. Nankervis et al. (2019) claimed that it goes without saying that AI is bound

to have a growing impact on employment in the coming years. AI is a multidisciplinary field that

incorporates ideas and concepts from many different disciplines, including linguistics, systems

thinking, probability theory, decision theory, and management science (Sakka et al., 2022).

According to Paschen et al. (2020), AI has advanced to the point where it can mimic

human intelligence, from performing repetitive manual tasks to higher-level cognitive activity

like understanding, solving puzzles, and making decisions. These advancements have been

practically implemented through a variety of technological innovations. Numerous technological

improvements have enabled the actual execution of these advancements. As a result, a variety of

new concerns around data protection, algorithmic bias, and workforce integration have been

brought up by the integration of AI with technology Nankervis et al. (2019). Human resource

management encompasses various approaches related to the human component in organizations.

Human resource management includes talent acquisition, staff management, and performance

evaluation methods and also in optimization of their performance (Bhardwaj et al., 2020). AI

technologies can help HR departments strengthen teams, reduce employee turnover, and improve

employee experience (D) (Danysz et al., 2018). Among the areas of HRM practice where AI has

yielded the strongest outcomes are: performance management, workforce planning, people

analytics, virtual assistants for self-service/HR service delivery, career patching, leadership, and

coaching (Berhil et al., 2020). AI is transforming how organizations manage personnel, design

HR calendars, assess productivity, increase efficiency, provide rapid feedback, and enhance

engagement (Sakka et, 2022).

19
 Literature Review

Bibliography:

1. Biliavska, V., Castanho, R. A., & Vulevic, A. (2022). Analysis of the impact of artificial
intelligence on enhancing human resource practices. J. Intell. Manag. Decis, 1, 128–136.

2. Sabil, S., Bangkara, B. A., Mogea, T., Niswan, E., & Timotius, E. (2023). Identification of HRM
Improvement Strategies Using Artificial Intelligence in Modern Economic Development. International
Journal of Professional Business Review: Int. J. Prof. Bus. Rev., 8(6), 10.

3. Abdeldayem, M. M., & Aldulaimi, S. H. (2020). Trends and opportunities of artificial intelligence in
human resource management: Aspirations for the public sector in Bahrain. International Journal of
Scientific and Technology Research, 9(1), 3867–3871

4. Zehir, C., Karaboğa, T., & Başar, D. (2019). The Transformation of Human Resource Management and Its
Impact on Overall Business Performance: Big Data Analytics and AI Technologies in Strategic HRM.
Contributions to Management Science, 265–279. https://doi.org/10.1007/978-3-030-29739-8_1

5. Budhwar, P., Malik, A., De Silva, M. T. T., & Thevisuthan, P. (2022). Artificial intelligence: challenges
and opportunities for international HRM: a review and research agenda. The International Journal of
Human Resource Management, 33(6), 1065–1097. https://doi.org/10.1080/09585192.2022.2035161

6. Gaur, B., Shukla, V. K., & Verma, A. (2019). Strengthening People Analytics through Wearable IOT
Devices for Real-Time Data Collection. 2019 International Conference on Automation, Computational and
Technology Management (ICACTM). https://doi.org/10.1109/icactm.2019.8776776

7. Murphy, S., & Riggio, R. E. (2003). The future of leadership development.

https://doi.org/10.4324/9781410608895

8. Li, J., Bonn, M. A., & Ye, B. H. (2019). Hotel employee’s artificial intelligence and robotics awareness and
its impact on turnover intention: The moderating roles of perceived organizational support and competitive
psychological climate. Tourism Management, 73, 172–181. https://doi.org/10.1016/j.tourman.2019.02.006

9. Awa, H. O., Ukoha, O., & Igwe, S. R. (2017). Revisiting technology-organization-environment (T-O-E)
theory for enriched applicability, The Bottom Line, 30(01), 2–22. https://doi.org/10.1108/bl-12-2016-0044

10. Ransbotham, S., KHODABANDEH, S., KIRON, D., CANDELON, F., CHU, M., & BURT, L. (2020)

11. Expanding AI’s impact on organizational learning. Research Report, 617-253–7170.

https://sloanreview.mit.edu/big-ideas/artificial-intelligence-business-strategy

12. Upadhyay, A. K., & Khandelwal, K. (2018). Applying artificial intelligence: implications for recruitment.
Strategic HR Review, 17(5), 255–258. https://doi.org/10.1108/shr-07-2018-0051

13. Storey, D. (2004). Exploring the link, among small firms, between management training and firm
performance: a comparison between the UK and other OECD countries. International Journal of Human
Resource Management, 15(1), 112–130. https://doi.org/10.1080/0958519032000157375

14. Kuzey, C., Uyar, A., & Delen, D. (2014). The impact of multinationalism on firm value:
A comparative analysis of machine learning techniques. Decision Support Systems,
59,127–142. https://doi.org/10.1016/j.dss.2013.11.001

20
 Literature Review

15. ‌Di Francesco Marino, C., & Maggi, F. M. (2020). Preface to the Special issue on
Artificial Intelligence for Business Process Management 2018. Journal on Data
Semantics, 9(1), 1. https://doi.org/10.1007/s13740-020-00111-w
16. Falcone, Borrelli, F., Asgari, J., Eric Tseng, H., & Hrovat, D. (2007, April 30). Predictive
active steering control for autonomous vehicle systems. IEEE Journals & Magazine |
IEEE Xplore. Retrieved May 7, 2024, from
https://ieeexplore.ieee.org/abstract/document/4162483/authors#authors
17. Kuzey, C., Uyar, A., & Delen, D. (2014). The impact of multinationalism on firm value:
A comparative analysis of machine learning techniques. Decision Support Systems, 59,
127–142. https://doi.org/10.1016/j.dss.2013.11.001
18. Kirkpatrick, K. (2024, April 25). Artificial Intelligence Market Forecasts. Omdia.
https://omdia.tech.informa.com/om000840/artificial-intelligence-market-forecasts
19. Danysz, K., Cicirello, S., Mingle, E., Assuncao, B., Tarasenko, N., Mockute, R.,
Abatemarco, D., Widdowson, M., & Desai, S. (2018). Artificial intelligence and the
future of the drug safety professional. Drug Safety, 42(4), 491–497.
https://doi.org/10.1007/s40264-018-0746-z
20. Carrel, A. (2019, January 1). Legal intelligence through artificial intelligence requires
emotional intelligence: a new competency model for the 21st century legal professional.
Reading Room. Retrieved May 16, 2024, from
https://readingroom.law.gsu.edu/gsulr/vol35/iss4/4
21. Sakka, F., Maknouzi, M. E. H. E., & Sadok, H. (2022). Human Resource Management in
the Era of Artificial Intelligence: Future HR Work Practices, Anticipated Skill Set,
Financial and Legal Implications. Academy of Strategic Management Journal,
21(1,2020). https://www.abacademies.org/articles/Human-resource-management-in-the-
era-of-artificial-intelligence-future-hr-work-practices,-anticipated-skill-set-financial-and-
legal-implications-1939-6104-21-S1-002.pdf
22. Paschen, J., Wilson, M., & Ferreira, J. J. (2020). Collaborative intelligence: How human
and artificial intelligence create value along the B2B sales funnel. Business Horizons,
63(3), 403–414. https://doi.org/10.1016/j.bushor.2020.01.003
23. Bhardwaj, G., Singh, S. V., & Kumar, V. (2020). An Empirical Study of Artificial
Intelligence and its Impact on Human Resource Functions. 2020 International
Conference on Computation, Automation and Knowledge Management (ICCAKM).
https://doi.org/10.1109/iccakm46823.2020.9051544
24. Danysz, K., Cicirello, S., Mingle, E., Assuncao, B., Tarasenko, N., Mockute, R.,
Abatemarco, D., Widdowson, M., & Desai, S. (2018). Artificial intelligence and the
future of the drug safety professional. Drug Safety, 42(4), 491–497.
https://doi.org/10.1007/s40264-018-0746-z
25. Berhil, S., Benlahmar, H., & Labani, N. (2020). A review paper on artificial intelligence
at the service of human resources management. Indonesian Journal of Electrical
Engineering and Computer Science, 18(1), 32.
https://doi.org/10.11591/ijeecs.v18.i1.pp32-40
26. Bernhaupt, R., Dalvi, G., Joshi, A., Balkrishan, D. K., O’Neill, J., & Winckler, M.
(2017). Human-Computer Interaction – INTERACT 2017: 16th IFIP TC 13 International
Conference, Mumbai, India, September 25-29, 2017, Proceedings, Part IV. Springer.
27. Tiple, V. (2020). Recommendations on the European Commission’s WHITE PAPER on
Artificial Intelligence - A European approach to excellence and trust, COM (2020) 65

21
 Literature Review

final (the ’AI White Paper’). Social Science Research Network.

https://doi.org/10.2139/ssrn.3706099
28. Zhou, J., Verma, S., Mittal, M., & Chen, F. (2021). Understanding Relations Between
Perception of Fairness and Trust in Algorithmic Decision Making. Research Gate.
https://doi.org/10.1109/besc53957.2021.9635182
29. Castelvecchi, D. (2016). Can we open the black box of AI? Nature, 538(7623), 20–23.
https://doi.org/10.1038/538020a
30. Olivas‐Lujan, M. R., Ramirez, J., & Zapata‐Cantu, L. (2007). e‐HRM in Mexico:
adapting innovations for global competitiveness. International Journal of Manpower,
28(5), 418–434. https://doi.org/10.1108/01437720710778402
31. Ruël, H., Bondar Ouk, T., & Looise, J. K. (2004). E-HRM: innovation or irritation. An
explorative empirical study in five large companies on web-based HRM. Management
Revue, 15(3), 364–380. https://www.jstor.org/stable/41783479
32. Voermans, M., & Van Veldhoven, M. (2007). Attitude towards E‐HRM: an empirical
study at Philips. Personnel Review, 36(6), 887–902.
https://doi.org/10.1108/00483480710822418
33. Lengnick-Hall, M. L., & Moritz, S. (2003). The impact of e-HR on the human resource
management function. Journal of Labor Research, 24(3), 365–379.
https://doi.org/10.1007/s12122-003-1001-6
34. Davis, F. D. (1985). A technology acceptance model for empirically testing new end-user
information systems: theory and results. http://ci.nii.ac.jp/naid/20001062454
35. Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of
information technology. Management Information Systems Quarterly, 13(3), 319.
https://doi.org/10.2307/249008
36. Qamar, Y., Agrawal, R. K., Samad, T. A., & Jabbour, C. J. C. (2021). When technology
meets people: the interplay of artificial intelligence and human resource management.
Journal of Enterprise Information Management, 34(5), 1339–1370.
https://doi.org/10.1108/jeim-11-2020-0436
37. Duerr, S., Holotiuk, F., Wagner, H., Beimborn, D., & Weitzel, T. (2018). What is digital
organizational culture? Insights from exploratory case studies. Proceedings of the . . .
Annual Hawaii International Conference on System Sciences/Proceedings of the Annual
Hawaii International Conference on System Sciences.
https://doi.org/10.24251/hicss.2018.640
38. Deshpande, R., & Webster, F. E. (1989). Organizational Culture and Marketing: Defining
the research agenda. Journal of Marketing, 53(1), 3–15.
https://doi.org/10.1177/002224298905300102
39. Ludolf, N. V., Silva, M. D. C., Gomes, C. F. S., & Oliveira, V. M. (2017). The
organizational culture and values alignment management importance for successful
business. Brazilian Journal of Operations & Production Management, 14(2), 272–280.
https://doi.org/10.14488/bjopm.2017.v14.n2.a15
40. Taherdoost, H. (2018). A review of technology acceptance and adoption models and
theories. Procedia Manufacturing, 22, 960–967.
https://doi.org/10.1016/j.promfg.2018.03.137
41. Bagnoli, C., Mas, F. D., & Massaro, M. (2019). The 4th Industrial Revolution.
International Journal of E-services & Mobile Applications/International Journal of E-

22
 Literature Review

services and Mobile Applications, 11(3), 34–47.

https://doi.org/10.4018/ijesma.2019070103
42. Elia, G., Margherita, A., & Passionate, G. (2020). Digital entrepreneurship ecosystem:
How digital technologies and collective intelligence are reshaping the entrepreneurial
process. Technological Forecasting & Social Change/Technological Forecasting and
Social Change, 150, 119791. https://doi.org/10.1016/j.techfore.2019.11979
43. Borda, A., & Bowen, J. P. (2019). Smart cities and digital Culture: models of innovation.
In Springer series on cultural computing (pp. 523–549). https://doi.org/10.1007/978-3-
319-97457-6_27
44. Müller, S. D., Obwegeser, N., Glud, J. V., & Johildarson, G. (2019, December 30).
Digital innovation and organizational culture: the case of a Danish media company. AIS
Electronic Library (AISeL). Retrieved May 20, 2024, from
https://aisel.aisnet.org/sjis/vol31/iss2/1/
45. Jalal, A. (2017). Impacts of organizational culture on leadership’s decision- making.
Journal of Advances in Management Sciences & Information Systems, 3, 1–8.
https://doi.org/10.6000/2371-1647.2017.03.01

46. Ehrhart, M. G., & Schneider, B. (2016). Organizational climate and culture. Oxford
Research Encyclopedia of Psychology.
https://doi.org/10.1093/acrefore/9780190236557.013.3
47. Basahel, S., & Alshawi, S. (n.d.). Examining the effect of organizational culture and
leadership on IS implementation. AIS Electronic Library (AISeL).
https://aisel.aisnet.org/ukais2014/31/

48. Christopher, O. A., & Edwinah, A. (2022). Organizational Culture and Corporate
Performance: A Review. Review Article. https://doi.org/10.36348/gajeb.2022.v04i05.001

49. Al-Zufairi, N. a. M., & Alenezi, N. A. (2021). The impact of Organizational Culture on
the Decision-Making Process for Kuwait University. USA-China Business Review.,
20(3). https://doi.org/10.17265/1537-1514/2021.03.001

50. L. Callahan, J. (2014). Writing Literature Reviews: A Reprise and Update. Sage
Journals, 13(3). https://journals.sagepub.com/doi/full/10.1177/1534484314536705

51. Fusch, G., & Gillespie, R. C. (2012). A practical approach to performance interventions
and analysis: 50 Models for Building a High-performance Culture. FT Press.

52. Mustafa, B. R. (2022). Impact of organizational culture and leadership on how decisions
are made for a business. ResearchGate. https://doi.org/10.9790/487X-2406010107

23
 Literature Review

53. Jalal, A. (2016). [PDF] Impacts of Organizational Culture on Leadership’s Decision-

making. Journal of Advances in Management Sciences & Information Systems, 3.
https://pdfs.semanticscholar.org/3b3f/bec2718b4b5b52f7a57e5df4ccb5357b4f70.pdf

54. Lu, D., Betts, A., & Croom, S. (2011). Re-investigating business excellence: Values,
measures and a framework. Total Quality Management and Business Excellence/Total
Quality Management & Business Excellence, 22(12), 1263–1276.
https://doi.org/10.1080/14783363.2011.631336

55. Ringrose, D. (2013). Development of an organizational excellence framework. ˜the

œTQM Journal, 25(4), 441–452. https://doi.org/10.1108/17542731311314917

56. Adebanjo, D. (2001). TQM and business excellence: is there really a conflict? Measuring
Business Excellence, 5(3), 37–40. https://doi.org/10.1108/13683040110403961

57. Samuelsson, P., & Nilsson, L. (2002). Self‐assessment practices in large organizations.
International Journal of Quality and Reliability Management/International Journal of
Quality & Reliability Management, 19(1), 10–23.
https://doi.org/10.1108/02656710210413426
58. Kassem, R., Ajmal, M., Gunasekaran, A., & Helo, P. (2018). Assessing the impact of
organizational culture on achieving business excellence with a moderating role of ICT.
Benchmarking, 26(1), 117–146. https://doi.org/10.1108/bij-03-2018-0068

59. Bocoya-Maline, J., Rey-Moreno, M., & Calvo-Mora, A. (2023). The EFQM excellence
model, the knowledge management process and the corresponding results: an explanatory
and predictive study. Review of Managerial Science, 18(5), 1281–1315.
https://doi.org/10.1007/s11846-023-00653-w

24
Literature Review

25