NTIB Assignment:

Critically examine the impact of machine learning in HR processes keeping

into account the Chinese Social Credit Score System and how would this
impact the future workplace.

Machine Learning:

We all know that learning is a key element of intelligence. This holds both for natural intelligence
and artificial intelligence. Machine learning is an application of artificial intelligence (AI) that
provides systems the ability to automatically learn and improve from experience without being
explicitly programmed. Machine learning focuses on the development of computer programs that
can access data and use it learn for themselves. The roots of machine learning are in statistics,
which can also be thought of as the art of extracting knowledge from data. Especially methods
such as linear regression and Bayesian statistics, which are both already more than two centuries
old (!), are even today at the heart of machine learning.
The process of learning begins with observations or data, such as examples, direct experience, or
instruction, in order to look for patterns in data and make better decisions in the future based on
the examples that we provide. The primary aim is to allow the computers learn
automatically without human intervention or assistance and adjust actions accordingly.

Machine learning enables analysis of massive quantities of data. While it generally delivers faster,
more accurate results in order to identify profitable opportunities or dangerous risks, it may also
require additional time and resources to train it properly. Combining machine learning with AI and
cognitive technologies can make it even more effective in processing large volumes of
information.

China Social Credit System:

China’s social credit system is an ambitious initiative to build a database that monitors individual,
corporate, and government behaviour across the country in real time. According to the Chinese
government, the system will use big data to build a high-trust society where individuals and
organizations follow the law. It will do so by assigning social credit scores to each entity based on
their behaviour, which are translated into a variety of rewards and punishments

Social credit system has focused on its relationship with individual citizens. There is one social
credit system for citizens, one for businesses and other organizations, and one for government
officials. The main purpose of the social credit system is to monitor and assess each group’s
trustworthiness, particularly as it relates to following laws and other rules.

For citizens, this mostly relates to creditworthiness in a similar way to how credit scores work in
Western countries. While the system has the potential to be abused, its main purpose is to address
the problem of China being a low trust society with limited credit information on each citizen.

For businesses, the system focuses on ensuring that they follow laws and regulations and pay taxes
in an appropriate and timely manner, though product and service quality will also be measured.
The goal, according to the government, is to create a fair, transparent, and predictable business
environment.

The social credit system is slightly different for government officials, who are assessed on criteria
such as the extent to which they carry out orders from the central government
The impact of machine learning in HR
Nowadays the understanding of the HR department has been changing. HR used to be about
finding the right candidates, managing assessments, giving offers, managing employee careers and
exits. Human resources today need to step up because the expectations have risen. The HR
department must be able to predict attrition and candidate success.

Before machine learning has come to the rescue, HR managed data in a manual and semi-
automated manner. To create analytics, it is necessary to gather, store, and process data. All of the
above need to be done in a short period of time because the data would quickly become irrelevant
as the situation is changing and the data needs updating.

Key considerations of machine learning in HR

1. Data-driven: ML is entirely objective, but it depends on the quality of the data being used.
 2. Need for human interaction: even though it seems like machine learning can do it all,
consider some human with the candidate. Randstad research shows that 82% of respondents
get frustrated with overly automated recruitment experiences. Based on that, it is important
to think through how machine learning in HR is used and where human integration is
necessary.

How China’s Corporate Social Credit Work:

The corporate social credit system collects, aggregates, and analyses data from businesses to create
a score that determines rewards and punishments. According to a report from the European
Chamber of Commerce, businesses and other organizations collect data on their own operations
and submit them to relevant local and national authorities, who then consolidate the data in the
National Credit Information Sharing Platform, which is a centralized database.

Government authorities also submit data on businesses directly through standard government
inspections. This data is then integrated in the National Internet+ Monitoring System, which
analyses the data to calculate ratings.

Businesses are mostly assessed on standard regulatory and compliance criteria that they are already
legally required to fulfil. This includes paying taxes on time, holding requisite licenses, meeting
product quality standards, and fulfilling environmental protection requirements. Additionally,
companies are subject to an array of industry-specific requirements depending on the nature of
their business.
The social credit system does, however, put forward some new and stricter requirements. One of
the most potentially problematic is the need to take responsibility for business partners. Even if a
company meets all its legal requirements, it can still be penalized if, for example, one of its
suppliers is on a blacklist.

Conclusion

Machine learning has become an important part of human resources. It’s not only helping people
to do their jobs but also can replace them where it’s needed to give HR employees more time to
focus on more important tasks. Machine learning can bring a better future to the HR world.