Information Technology & Artificial Intelligence in HRM (Cambridge (CIE) A Level Business)

Revision Note

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

The use of IT in HRM

  • Information technology (IT) is increasingly used to automate processes in HRM such as:

    • Record keeping

      • Keeping employee details

      • Holding training and appraisal documents

      • Storing tax and pension records

    • Scheduling

      • Planning shifts

      • Monitoring periods of leave

      • Prioritising tasks

    • Recruitment

      • Online job advertisements, including the use of social media

      • Electronic application submission

    • Training

      • E-learning training modules

      • Online assessments

      • Remote training sessions using videoconferencing software

    • Performance management

      • Performance capture using monitoring software

      • Online appraisal meetings

      • Email distribution of performance targets

Implications of using IT in HRM Processes

Implication

Explanation

Saves time

  • Automating standard processes such as work schedules and document storage can free up managers' time to focus on more complex issues

  • Using IT increases convenience for stakeholders, such as potential and existing employees, as processes can be completed at times that are suitable for them

    • E.g. An online job application can be submitted at any time

Employee concerns

  • Collecting data on employee performance using automated systems can cause disquiet amongst staff, who may feel that they are being watched

  • Some employees may be concerned about the security of personal and performance data being held in IT systems 

Communication between managers and subordinates

  • Workers may feel remote from their managers when contact is largely conducted online, possibly leading to a them and us culture to develop

  • Less two-way discussion may limit the opportunity for employees to share ideas, concerns and queries with managers

The use of Artificial Intelligence in HRM

  • Artificial intelligence (AI) is the ability of a computer or robot to perform tasks commonly carried out by human beings due to their complexity

  • AI is expected to have a significant impact on HRM processes in the coming years

    • Recent research suggests that in larger businesses AI is already widely used in HRM processes, including employee records management, payroll processing, recruitment, performance management and onboarding new employees

Diagram: The use of AI in HRM Processes

screenshot-2024-03-12-113402

Artificial intelligence is being used in a variety of ways to automate HRM processes, such as recruitment, selection, onboarding and employee training

Sifting job Applications & Shortlisting

  • AI can be used to swiftly review the contents of job applications and determine which meet the requirements of the job description and person specification without bias and determine which candidates should be invited to an interview

Analysing Interview Responses

  • Recordings of responses to interview questions can be analysed using AI to determine which are aligned most closely with business values

  • In real time, AI can even be used to suggest suitable follow-up questions within an interview

Onboarding Processes

  • AI can be used to automate processes before a successful candidate begins working for a business, such as 

    • Responding to employee questions

    • Verifying employee documents

    • Handling administrative tasks such as providing IDs and access to company hardware and software

    • Conducting induction training

Biometric Monitoring & Security Systems

  • Tools such as fingerprint scanning and facial recognition can be used alongside AI tools to control processes such as access to physical premises and IT equipment as well as monitoring attendance

Virtual Reality Training Courses

  • Virtual reality software uses AI to create environments that respond to trainee actions and choices, providing realistic and tailored interactive training

Chatbots Responding to Employee Queries

  • Chatbots that respond to frequently-asked questions related to aspects such as pay, paid leave and employee benefits can increase the amount of time HR managers have to spend on strategic elements of their role

Examiner Tips and Tricks

You will not be required to demonstrate extensive knowledge of specific IT or AI tools used by HRM. However, you may be required to analyse the impact of the increased use of these developments on those who work in HRM, or on workers interacting with automated processes.

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Author: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.