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Artificial Intelligence ‒ Impacting Performance Management at Work

AI’s ability to process vast volumes of information with lightning-fast speeds, interpreting them correctly and eliminating human biases has helped many companies make unprecedented improvements in performance management.

In today’s corporate world, there’s a confidence crisis in the way industry evaluates employee performance. Recent research showed that only 6% of organizations think their performance management processes are worthwhile. This is not a surprising figure, since commonly used metric-based systems, mostly undertaken annually, make it hard to spot the grey areas in performance management at the right time. Modern or agile performance management practices, on the other hand, encourage conducting performance reviews at very frequent intervals. Inducing Artificial Intelligence has taken it a step further and eliminated the need for fixed intervals altogether. It allows performance assessments to take place in real-time on a consistent basis.

AI has the capacity to instantly analyze the infinite permutations of interdependencies that exist between an organization’s physical and virtual infrastructure layers. This allows it to instantly trace the source of any under-performance right back to the root cause. With AI, organizations have the solution for how to resolve the issue quickly before it impacts the end-user while maintaining end-to-end visibility.

Because AI-driven assessment can happen in real-time with systems monitoring targets, quotas and how these are affected by people’s connections, incentives and praise for good performance can be served on an immediate basis. If targets are not being met or performance standards are going down, then intervention can take place before the problem grows and becomes unmanageable.

To understand with an example, during the goal-setting process, employees are often given fixed targets or quotas they need to achieve within a specific time limit. AI can help to monitor this progress in real-time and give feedback instantaneously, based on the status. If the performance is right on track, reward employees with recognition or incentives, as is the practice. On the other hand, if they have diverted from their path, immediately notify and help them get them to the desired stage. AI assists by intervening in a timely manner before it snowballs into something unmanageable.

With large amounts of data available about every employee, AI-based performance analysis also provides the option to determine which skills need to be polished or be learned to get better at the job. Artificial Intelligence can help the system identify which employees need to reinvent their skills before they get obsolete or replace with better technologies.

Moreover, Artificial intelligence is not concerned with biases at work when it comes to assessing performance, experience or salary, unlike the human bias which does slip in, even if unintentional. AI in performance management addresses the contrast bias as well as recency bias very effectively focusing on continuous real-time feedback and actual performance rather than gender, race, nationality, age or ethnicity.

With pattern matching, AI and ML give companies the ability to detect patterns quickly so they can move faster to counteract impending obstacles or negative trends.

  • Posted Date: 18-MAR-2020