Transforming HR Practices: Using AI to Revolutionize Employee Performance Management

Abstract

Employee performance management has always relied on traditional methods such as annual reviews and self-assessments. However, these methods often lead to flaws, biases, and limited insights. This paper investigates how artificial intelligence is reshaping performance management by offering more efficient, objective and data-driven approaches. Through machine learning, natural language processing, and the use of real-time feedback systems, organizations are now able to continuously assess employee performance, provide personal feedback, and make informed decisions based on real-time data. The paper looks at how artificial intelligence can improve the accuracy of performance assessments, enhance employee growth through customized development plans, and promote greater engagement with quick feedback mechanisms. While these developments have great potential, challenges such as data privacy, algorithm biases, and employee trust must be addressed carefully. Based on case studies and current research, this paper highlights the benefits, challenges, and future prospects of artificial intelligence in employee performance management, and provides practical insights for organizations that want to modernize their HR practices.