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A review of machine learning Machine

learning and
applications in human HRM

resource management
Swati Garg, Shuchi Sinha and Arpan Kumar Kar
Department of Management Studies, Indian Institute of Technology Delhi,
New Delhi, India, and Received 16 August 2020
Revised 23 December 2020
Mauricio Mani 9 January 2021
Accepted 9 January 2021
Department of Administration Studies, Universidad Nacional Aut
onoma de M
exico,
Ciudad de Mexico, Mexico

Abstract
Purpose – This paper reviews 105 Scopus-indexed articles to identify the degree, scope and purposes of
machine learning (ML) adoption in the core functions of human resource management (HRM).
Design/methodology/approach – A semi-systematic approach has been used in this review. It allows for a
more detailed analysis of the literature which emerges from multiple disciplines and uses different methods and
theoretical frameworks. Since ML research comes from multiple disciplines and consists of several methods, a
semi-systematic approach to literature review was considered appropriate.
Findings – The review suggests that HRM has embraced ML, albeit it is at a nascent stage and is receiving
attention largely from technology-oriented researchers. ML applications are strongest in the areas of
recruitment and performance management and the use of decision trees and text-mining algorithms for
classification dominate all functions of HRM. For complex processes, ML applications are still at an early stage;
requiring HR experts and ML specialists to work together.
Originality/value – Given the current focus of organizations on digitalization, this review contributes
significantly to the understanding of the current state of ML integration in HRM. Along with increasing
efficiency and effectiveness of HRM functions, ML applications improve employees’ experience and facilitate
performance in the organizations.
Keywords Human resource management, Machine learning, Data-based decision making, HRM functions,
Performance improvements
Paper type Literature review

1. Introduction
The worldwide networks of data sharing and supply chains have led to rampant
globalisation; resulting in greater geographical mobility, resource sharing, virtual working
and teleworking in multinational corporations (MNCs) (Bolton et al., 2019). These
advancements have transformed the global HRM function significantly. On one hand,
there are opportunities for global talent acquisition, learnings from global HRM practices and
benefits of knowledge sharing through manpower movement across geographies. On the
other hand, there are challenges pertaining to managing global talent, balancing
globalization vs local adaptations and developing HRM competencies aimed at
strengthening manpower productivity (Brookes et al., 2017; Chiang et al., 2017).
Intelligent algorithms, based on artificial intelligence (AI) and machine learning (ML), help in
resolving some of these challenges as well as in increasing efficiency (reduced cost and effort of
data analysis and subsequent decision support) and/or effectiveness (improved quality of data
analysis and subsequent decision support) of HRM. IBM and Microsoft are using AI and ML to International Journal of
Productivity and Performance
Management
Authors would like to acknowledge the Department of Management Studies, Indian Institute of © Emerald Publishing Limited
1741-0401
Technology Delhi for their support for this study. DOI 10.1108/IJPPM-08-2020-0427
IJPPM identify applicants suitable for particular jobs (Castellanos, 2019); thereby standardizing
applicant sourcing and resume screening methods for all their subsidiaries. Similarly, Club Med
is digging into its employee data to identify factors contributing to their job satisfaction (Bolton
et al., 2019); useful for designing personalized incentives to boost job satisfaction.
The term “Artificial Intelligence” was coined in 1956 by John McCarthy, who invited
researchers from all over the world to discuss the possibility of computers becoming as
intelligent as humans. Discussions of this conference gave birth to the interdisciplinary field
which is referred today as AI. AI has become a large field of interest for researchers and
practitioners globally. ML is a subset of AI, but often, the terms are used interchangeably. AI is
wider in scope and includes the diverse technological developments that help a computer
simulate human intelligence, whereas ML is a way to achieve AI and includes development of
algorithms that improve upon themselves with experience (Colonna, 2013). While the rhetoric on
AI applications in HRM has moved quickly, the ground reality shows that these applications are
thriving on ML and analytics so far. A global survey conducted by KPMG, representing 1201
senior HR executives from 64 countries, reveals that less than 20% companies have invested in
AI so far; and those who have invested are focussed on ML and analytics (Bolton et al., 2019).
The move from human resource information systems to HR analytics in researcher and
practitioner worlds has been synthesized well over the past few years (Andersen, 2017;
Angrave et al., 2016; Marler and Boudreau, 2017; Rasmussen and Ulrich, 2015; Van den
Heuvel and Bondarouk, 2017). However, this discussion has taken a radical shift to AI
adoption, its challenges and opportunities (Tambe et al., 2019). There is insufficient research
capturing ML adoption before a full AI integration in HRM. Our research questions aim to
address this gap, as we examine:
(1) How are HRM functions witnessing ML adoption?
(2) What are the objectives of using ML in the HRM functions?
(3) How are these HRM objectives and ML methods associated with each other?
In doing so, we aim to gather insights on the current state of ML integration in HRM and discuss
its implications for HRM. A total of 105 Scopus-indexed papers on ML applications in HRM
were reviewed, with an aim to map the current landscape and carve future avenues for research.
The review reveals increasing adoption of ML-enabled algorithms in HRM, particularly in
processes where large amount of data are available and which are amenable to standardization,
such as recruitment and selection. Adoption of ML in more complex processes requires greater
collaboration between HR leaders and domain experts to facilitate simultaneous consideration
of multiple parameters and ease of data sharing. The HR managers need to develop greater
competencies for data analysis and greater evidence-based approach to decision-making.
Concerns pertaining to data gathering, storage and security remain germane.
The remaining manuscript is structured to explain the methodology of the literature
review, followed by the key findings from it. The subsequent sections discuss the
implications of this work for HRM and future directions for research.

2. Research methodology
A semi-systematic approach has been adapted for this review (Snyder, 2019). Such an
approach is suitable when there are diverse disciplines and/or methods underlying a topic
(Wong et al., 2013); or when a topic’s complexity makes it less appropriate for a quantitative
meta-analyses (Hammersley, 2001; Intindola et al., 2017). Both ML and HRM are complex
areas; typically studied and conceptualized by various researchers from diverse domains
such as management, social science and computer science. Besides, ML applications consist
of an array of methods and algorithms which are less appropriate for deducing a combined
evidence of effect. A semi-systematic approach was, therefore, used to identify ML research Machine
trends in HRM and, subsequently, synthesize and provide an over-arching narrative of the learning and
research findings.
The study started by defining the research objective and then moving to the literature
HRM
search and review process. The research objective is to determine how ML is being employed
in HRM, in which functional areas of HRM and in what context. We were specifically
interested in functions that facilitate the management of employees during their lifecycle in
an organization. Therefore, the scope of review was limited to micro HRM; defined as the
process “concerned with managing individual employees and small work groups” (Bratton
and Gold, 2017, p. 13). It includes functions such as recruitment, selection, training and
development, performance management and rewards.
ML is defined as the application of those algorithms that are used to find regularities in the
data mining process, through which a learning mechanism is developed (Colonna, 2013;
Mitchell, 1999). This learning mechanism is used by computers for prediction purposes.
Accordingly, the inclusion criteria allowed us to review all the papers using ML algorithms
for prediction purposes in the micro HRM domain.
A keyword-based advance search was conducted on Scopus, Elsevier’s citation and
abstract database. Scopus is the largest database for peer-reviewed literature. It provides a
user-friendly interface to search for publications based on multiple criterion like year of
publication, document type, keywords, language, source type, source title and subject area. A
thorough Scopus search was considered sufficient for this study, as it ensures comprehensive
coverage of the literature, including conference publications which capture the emerging
discussions and explorations.
In alignment with the research objective, keywords related to HRM and ML were used for
literature search. For HRM, the search terms used were: “human resource management”,
“talent management”, and “HRM”. The use of “HRM” and “human resource management” as
keywords was sought appropriate to ensure the coverage of various HRM related functions
that are witnessing ML applications. Talent management has often been described to
encompass typical functions and practices involved in managing humans such as
recruitment, selection, development and retention (Lewis and Heckman, 2006; Scullion
et al., 2010; Thunnissen, 2016). Together these keywords were chosen with a view to ensure
comprehensive coverage of papers from the various HRM functions. For ML, the search terms
were “machine learning”, “data mining”, “data science”, “algorithm” and “analytics”. These
two sets of keywords were connected with the “AND” operator and the search was limited to
title, abstract and keywords. The search was also restricted to conference papers and journal
articles in English language. The search was run in June 2018, and we did not set any starting
year. It resulted in a total of 950 publications.
In the next step, publications were reviewed for inclusion criterion by reading their source,
title and abstract. Only those papers were included which involved application of an ML
algorithm in any of the micro HRM functions, as listed before. Papers from subjects other
than human resource management such as those belonging to natural science, material
science, other business and management areas like finance and economics, etc. were removed.
For instance, macroeconomic papers relating to workforce demand forecasting using ML
algorithms were excluded. This step resulted in 168 publications.
The last step included a careful scrutiny of complete manuscripts by two authors to
ensure inclusion of only those papers which met the inclusion criterion. Both the authors first
conducted their own individual scrutiny, post which they actively discussed cusp case papers
and reached a consensus on the final list. Text mining-based papers were included only if the
method was later modelled for classification, regression and other learning tasks. Papers only
on analytics were excluded if their purpose was limited to finding patterns from historical
data and not make any predictions about the future state. Papers containing a practical or
IJPPM theoretical algorithm application on predictive analytics that learns through data to improve
their parameters in order to increase the accuracy of its predicted output were included.
Publications on optimization algorithms to improve the base algorithms like logistic
regression, decision trees or neural networks, etc. that were applied to human resources
database were included. Papers focussing on ethics and employee frauds were excluded due
to their compliance focus. Papers on management of HR data were included only if an ML-
based algorithm was applied. Duplicate publications were removed. This led to a final review
size of 105 papers.

3. Results and analysis

3.1 General results and analysis
A significant number of research publications identified in the review suggest that ML
applications are prospering in the area of HRM. Nearly two-third articles (n 5 69) were
published in conferences, while only 36 were published in journals (See Figure 1); suggesting
that HRM is a relatively new field for ML applications. The bulk of journal publications are in
technology-oriented journals with only four articles published in management-oriented
journals (and that too recently, in 2018): personality and individual differences (Akhtar et al.,
2018), business horizons (Pitt et al., 2018), management research review (Rombaut and
Guerry, 2018) and evidence-based HRM (Nandialath et al., 2018). This indicates that attempts
at applying ML in HRM are being made by researchers from technology and methods
background. A noteworthy observation is the narrowing of difference between the number of
papers in journals and conferences from 2017 onwards – a decline in conference papers with a
simultaneous increase in journal papers shows the rising confidence, interest and acceptance
of ML-based research in HRM from journal publishers.
A network analysis was conducted using author keywords from final review set of 105
publications (see Figure 2). Network analysis results in clusters based on association between
keywords. These clusters broadly represent themes which could be identified by a back
referencing with review dataset. The themes were also validated through establishing inter-
coder reliability and face validity among the research team, first independently and then
through consensus achievement, for ensuring that researcher biases are minimized. The

16

14

12

10

2
Figure 1.
Total research 0
contributions 2002 2004 2006 2008 2010 2012 2014 2016 2018
over years June
No. of Conference Papers No. of articles
 Machine
learning and
HRM

Figure 2.
Network analysis of
author keywords

research team had two members from the human resources area and two from the
information systems area. The themes that emerged from network analysis were:
performance management, recruitment, employee attrition, career development,
subjectivity detection, classification, clustering analysis, text mining, support vector
machine and discriminant analysis. A closer observation of the network shows data
mining as the highest centrality node (keyword with the highest number of associations
linked with it) and ML and AI as emerging nodes. This reflects not only the continued
prominence of traditional data mining methods in HRM but also the shift towards ML and AI
as researchers realise the opportunities they offer.
The network analysis was followed by thematic analysis jointly conducted by two
authors. In case of divergent views on a particular paper, all four authors discussed and
reached an agreement on the emergent theme(s) in that paper. The three categories of themes
that emerged are: (1) HRM functions witnessing ML integration (recruitment, selection,
employee engagement, training and development, performance management, employee
turnover, team dynamics and human resource allocation), (2) ML objectives addressed in
these HRM functions (classification, clustering, regression, association rules mining,
sequence mining and anomaly detection) and (3) methods and algorithms used to address
the identified ML objectives (decision tree, k nearest neighbour; support vector machine,
probability based model, random forest, text sentiment analysis, k means clustering, text
summarization, artificial neural network, ensemble classifier, etc.).
IJPPM 3.2 Function-specific results and analysis
Figure 3 shows the distribution of research publications over the identified HRM functions.
Recruitment followed by performance management has emerged as the prominent HRM
functions where most of the ML based research has been conducted (also see Figure 4).
Employee turnover, selection, training and development and human resource allocation
follow closely after. Publications have also been identified on team dynamics which shows

Figure 3.
Research contributions
over HRM functions
and ML objectives

Figure 4.
Network analysis
showing association of
ML methods,
algorithms and HRM
functions
the emergence of data-driven research in team management. Publications on employee Machine
engagement are scarce (also see Figure 4), indicating fewer attempts at integrating learning and
technology for nuanced HRM functions which require greater domain proficiency. Section 4
captures the research developments in each of these HRM functions.
HRM

3.3 Methods-specific results and analysis

We conducted methods-wise analysis in two stages: a graphical analysis to examine the ML
objectives (see Figure 3), and, a network analysis to identify the ML methods and algorithms,
as used in HRM functions (see Figure 4).
Ranging from basic to advanced, there are six ML objectives (Rathore et al., 2017):
classification, clustering, regression, association rules mining, sequence mining and anomaly
detection. Classification refers to the process of predicting the classes of input variables based
on training from examples of each class and is mostly supervised in terms of learning and
reasoning. Regression is a statistical approach to predict the value of output variables from
one or more input variables, whereby linear lines or planes are used to predict the dependent
variable based on a single or multiple independent variables. Clustering seeks to group
similar objects or data points together based on similarity of attributes. Association rules
mining establishes if-then rules among variables in a large dataset by identifying the
co-occurrences among them, without analysing the attributes which describe these variables.
Sequence mining helps in discovering statistically relevant patterns in sequential data.
Anomaly detection is the process of identifying unexpected or rare items, which are
significantly different from the majority of dataset. Several algorithms are employed to
achieve these objectives; however, the purpose of this review is not to review the algorithms in
detail, but to observe the HRM functions in which ML is being used.
The graphical analysis (Figure 3) reveals that classification is the most frequently used
objective in all the HRM functions, given its fundamental value in predicting classes.
Regression, clustering and association rules mining have also been applied throughout the
HRM domain. This may be because these objectives allow basic sense-making from raw
datasets. Sequence mining and anomaly detection consist of advanced pattern mining
techniques and ML algorithms, which are applicable for definite targets; however, their
application to HRM was found to be limited. Utilization of such advanced approaches may
require active collaboration between HRM domain experts and ML experts.
The network analysis (Figure 4) was conducted by associating the ML methods and
algorithms with the HRM functions they were enabling. Highest centrality is observed in
methods like decision trees, probability based models and text categorization for recruitment
and performance management. Decision trees are used to predict the categories or labels of
input observation. Text categorization allows for automatic conversion of large texts into
categories based on linguistic rules. Both decision trees and text categorization allow quick
and smart classification of large employee-related data (resumes, performance feedback, etc.);
hence their centrality is high. Probability-based models are used to predict the probability of
occurrence of an output observation based on some input observations. They are used when
the imperfect knowledge about a problem-at-hand makes it probabilistic in nature; hence
their centrality is high as HRM functions cater to people-related information which is often
insufficient.

4. Detailed analysis of the results

This section presents a detailed overview of the current state of ML integration in HRM.
Objectives for ML applications in each HRM function are mapped in Table 1 and explained
briefly thereafter.
IJPPM HRM function Objectives for ML application

Recruitment Assessing suitability of candidates for job positions; extracting information from
resumes and analysing applicants’ profiles
Selection Identifying decision attributes for selection and developing selection models
Employee engagement Understanding brand engagement of employees; current sentiment of employees
and factors boosting job stress
Training and Identifying training needs; recommending relevant courses and measuring training
development effectiveness
Performance Performance evaluation; performance prediction; detection of bias in appraisal
management process; estimation of expertise level of employees and development of customized
incentives for employees
Employee turnover Predicting employees’ turnover using their personal and work-related factors
Table 1. Team dynamics Recommending team members; assessing team performance; understanding teams’
Objectives identified sentiments and understanding teams’ interaction patterns
for ML applications in Human resource Allocating people to different categories
HRM Functions allocation

4.1 Recruitment
Attracting appropriate candidates for vacant jobs is an arduous but critical task. Companies
frequently use web searches to seek potential candidates. This is not only time-consuming
but also problematic since the organizations and candidates often use different terminologies;
leading to mismatches or missed matches. This issue is more pronounced when searching
from a global talent pool. Use of ML offers the promise of speedy and improved match-
making between candidates and jobs; facilitating process efficiency.
The review shows that ML has automated the process of extracting candidates’
information from their resumes (Cernian and Sgarciu, 2017; Chen et al., 2016; Qian and
Ohwada, 2018) by using readily available Python’s Natural Language Processing Toolkit
(proposed by Sivaramakrishnan et al., 2017) and using Conditional Random Fields and
Maximum Entropy Markov Models as suggested by Farkas et al. (2014).
The subsequent process of assessing candidates’ suitability for vacant job positions has
also witnessed ML integration. While some researchers have assessed personality traits of
candidates based on their social media usage (Abel et al., 2017; Faliagka et al., 2012; Menon
and Rahulnath, 2016), others have measured their skills, qualifications and achievements
against job requirements (Faliagka et al., 2014; Jantan et al., 2010; Truica and Barnoschi,
2015). Giri et al. (2016) developed a comprehensive recruitment model assessing personality
traits and professional skills using candidates’ information from Twitter, LinkedIn, GitHub
and SPOJ. Such models offer MNCs the promise of a comprehensive and bias-reduced process
that can evaluate applicants across all talent pools on pre-established parameters.
Keeping in view candidates’ requirements for time-efficient and accurate job searches,
researchers have applied a reverse approach of assessing the relevance of jobs for potential
candidates and making recommendations accordingly. The dataset used for this kind of
assessment varies from a narrow set like the candidates’ profile information (Heggo and
Abdelbaki, 2018) to a broader set including the information of their network of friends (Diaby
et al., 2013).

4.2 Selection
Use of ML in selection process has seen efforts towards identifying attributes to be used as
selection criterion (Chien and Chen, 2008; Cho and Ngai, 2003; Gupta and Suma, 2014; Hu,
2017) and developing selection models accordingly (Chen and Chien, 2011; Tai and Hsu, 2006).
Attributes identified range from employees’ demographic characteristics like age, gender,
marital status and past annual income to their personal characteristics like reaction Machine
capability, comprehensive ability and psychological quality. Subsequent selection models learning and
have been developed by using decision tree classification algorithms. Shehu and Saeed (2016)
developed a distinctive model that provides decision rules for recruitment which are
HRM
adaptable to changes in selection strategy. HRM leaders of MNCs can build similar decision
models capable of adapting rules contingent upon the strategic variations among
subsidiaries.

4.3 Employee engagement

Employee engagement is desirous for most organizations, for it propels employees to care
about their organizations and work harder for its success (Al Mehrzi and Singh, 2016; Anitha,
2014). Employee-related data have been analysed in diverse ways to increase employee
engagement. First, text mining on data extracted from employees’ social media profiles has
been used to understand their brand engagement (Pitt et al., 2018). Second, sentiment analysis
on data obtained from employees’ Twitter accounts (Strohmeier and Piazza, 2015) has been
used to understand employees’ sentiments. Third, correlation-based feature selection along
with regression has been used for establishing relationship between the selected factors and
job stress environment (Lee and Shin, 2010). These applications offer MNCs an opportunity to
compare employee sentiments and brand engagement across geographies; allowing for
customization of employee engagement practices.

4.4 Training and development

Existing skills become obsolete over a period of time; creating a need to learn new skills. ML
assists in automating several steps of the training process. Association rules mining have
helped to automate training needs identification of employees and recommend relevant
courses to them (Chen et al., 2007). Technology giants like IBM are assisting MNCs like Royal
Bank of Scotland Group in deploying chatbots, which act as personal career coaches for
employees and suggest relevant trainings and readings to them (Castellanos, 2019).
Classification algorithms attempt to automate measurement of training effectiveness in terms
of trainees’ performance and learning behaviours (Wang et al., 2015).
Novel methods making use of ML algorithms (like survival analysis approach developed
by Li et al., 2017) can help organizations to predict the occupational level of employees at
different time intervals during their career. These predictions can be utilized to provide
employees with career guidance and relevant trainings during their tenure with the
organization. IBM’s Blue Match software leverages ML in a similar way to suggest jobs for
career advancement within the organization (Rosenbaum, 2019).

4.5 Performance management

Performance management consists of employees’ performance evaluation against their task
duties and responsibilities. Well-established evaluation methods like 360 degree feedback are
time-consuming and expensive. ML saves this expenditure by automating performance
evaluation (Gui et al., 2014; Jing, 2009; Li et al., 2012). Research demonstrates how ML
algorithms can cluster employees into distinct groups on the basis of their performance level
and job satisfaction level (Aktepe and Ersoz, 2012). Suitable strategies can be devised to
strengthen performance of low performers and boost the morale of less satisfied employees.
Researchers have also utilized ML algorithms to predict the performance level of
employees on the basis of their background data and performance characteristics (Augusto
et al., 2013; Huang et al., 2006; Li et al., 2016; Sharma and Goyal, 2015). This approach however
needs to be adopted with caution. Deloitte’s research shows that automated access to
IJPPM employees’ personal information for performance management purposes decreases their
motivation level (“Deloitte center for the long view”, n.d.). Average performers, in particular,
might prefer a human assessor to an algorithm to explain their situation properly.
Novel applications of ML within performance management include detection of
subjectivity in performance appraisal process using text analysis and natural language
processing (Abed and El-Halees, 2017), estimation of expertise level of employees using data
mining and ordinal regression clustering (Horesh et al., 2016), analysing the impact of
financial incentives on efficiency of employees using classification algorithms (Massrur et al.,
2014) and profiling of employees to develop customized incentives using classification
technique (Petruzzellis et al., 2006).

4.6 Employee turnover

In the HRM scholarship, employee turnover behaviour has elicited significant research in the
form of turnover models aiming to predict turnover intentions (Coetzer et al., 2019; Sandhya
and Sulphey, 2020). Our review reveals continued interest in this direction using ML-based
algorithms. Researchers have used a wide range of factors to predict employee turnover:
work-related factors such as number of promotions, hike in salary, last evaluation, time spent
in company and working hours (Rabcan et al., 2017; Sisodia et al., 2018; Zhao, 2014), employee-
related factors such as age, gender, native-place, marital status (Fan et al., 2012; Rombaut and
Guerry, 2018) and a combination of both (Li et al., 2017; Srivastava and Nair, 2018; Qu, 2015).
In a unique attempt, Saradhi and Palshikar (2011) developed an employee value model on top
of voluntary turnover model to help organizations predict not only which employees are
likely to leave the organization but also which of them are valuable to the organization. Their
model considers work-related attributes such as importance of the project the employee was
working on, number of months a client was billed for the employee and number of months an
employee was deputed on an on-site assignment.
A first of its kind, Nandialath et al. (2018) included the presence of model uncertainty using
bayesian model averaging in their research. Model uncertainty means the uncertainty with
regard to which variables to include in a model. Their study highlights job satisfaction and
perceived organizational support as predictors of employees’ intentions to leave, which are
independent of model specification. They have also depicted how conclusions vary
depending on which models are chosen for research. MNCs should assess the appropriateness
of their chosen models for conducting turnover modelling, as predictors of turnover
behaviour can vary for employees across different geographies, cultures and work profiles.

4.7 Team dynamics

ML applications in the area of team management are reviewed under four themes:
compositions of teams, performance of teams, sentiments and opinions of team members and
collaboration/interaction patterns within the teams. ML-supported application systems
enable automated recommendation of team members. These systems capture data from
multiple sources like bibliographic database, social network, intranet, the web and the
opinions of employees on their team leaders, in order to suggest suitable team members under
different team leaders (Brindha and Santhi, 2012; Datta et al., 2014; Masuda et al., 2016;
Sch€onig et al., 2018). MNCs can similarly use AI to recommend team compositions for their
projects, especially for their virtual teams, as the scope of miscoordination and
miscommunication is often more in them.
ML facilitates prediction of team performance and efficiency (e.g. through cox regression)
keeping in view members’ characteristics (Masuda et al., 2017) and collaboration patterns
(Fan et al., 2017). ML application to teams’ sentiments and opinions has also been helpful.
Hans and Mnkandla (2017) built an ML-powered tool to detect the polarity of team’s
sentiments and analyse the duration of sentiment for each member, the last time it was Machine
expressed etc. Heil et al. (2015) developed a platform that analysed members’ level of activity learning and
(high/inactive/low) and their mood (negative/positive/neutral) to generate information on the
overall climate of the team.
HRM
Researchers have analysed the interaction patterns of team members in their respective
team meetings by using a combination of social network analysis, pattern mining techniques
and classification algorithms (Lin et al., 2003; Shejale and Gnagawane, 2016). This level of
micro-analysis helps in evaluating discussions and the role that each team member plays in
meetings.

4.8 Human resource allocation

Information pertaining to member’s characteristics (age, experience, etc.) facilitates decisions
pertaining to job-role allocations and incentive design. Nikitinsky et al. (2016) developed a
system based on text mining and classification techniques to ascertain the generation to
which each individual belongs; resolving classification challenges pertaining to cusp cases.
This helps to manage diversity of expectations, perceptions and skills inherently present in
multigenerational teams; thereby making the HRM function perform better at managing
people.

5. Discussion and implications

ML in HRM comes at an interesting time when HRM is moving from its traditional talent
management role to a new business-partner role. The traditional reactive HRM has given way
to a proactive and predictive HRM that needs greater alignment with organizational
objectives. This marks a fundamental shift in the philosophy of HRM; requiring it to be more
inclusive, agile and responsive. Use of ML supports this transition by allowing for time and
cost savings on routine processes like analysing job applicants’ profiles and enabling
predictive capabilities for complex processes like forecasting employee turnover.
The review reveals that ML application is strongest in the areas of recruitment and
performance management (see Figures 3 and 4); possibly due to their measurable nature. ML
application in recruitment is further supported by the availability of data (from various
sources like networking platforms, employment websites and online communities) and ease
of information extraction and summarization, necessary for preliminary sorting of job
applicants. Researchers have made several attempts at automating the analysis of CVs
coming in varied formats (PDF, XML, JSON or HR-XML; Strohmeier and Piazza, 2015) and in
diverse languages (Farkas et al., 2014). Zhao et al. (2015)’s skill identification and tagging
system is being used by one of the largest online employment website “Careerbuilder”.
For complex processes which require cognitive flexibility and understanding of socio-
psychological phenomenon, ML is at an introductory stage. Xiaoling and Feng (2010)
developed a composite fuzzy method for a comprehensive evaluation of school teachers in the
interview process. This method needs validation on large datasets, which has not been picked
up by other researchers.
A shift is observed in the maturity level of algorithms being employed in HRM (Figure 5).
Heuristics-based algorithms like neural networks, decision trees, etc. have been applied for
simple HRM problems of classification and prediction. For instance, matching of job offers
vis-a-vis job applicants and employee sentiment analysis using decision trees, k-means
clustering and text mining algorithms. Decision trees and text mining algorithms (text
categorization, text sentiment analysis) for classification objective have been well used in all
HRM functions. This is due to their transparency, ease of understanding and quicker learning
mechanism when compared to other algorithms. Contrastingly, there are fewer applications
IJPPM of artificial neural networks, support vector machines and genetic algorithms; owing to their
limited understanding of how the algorithm works, which further restricts interpretation and
improvisation of the algorithm.
Metaheuristics (systems automatically selecting a suitable algorithm to search different
pockets of data for a sufficient solution) have been used for complex HRM processes and
optimization problems. However, such applications are rare. For instance, Li et at. (2017) used
survival analysis method for career progression modelling – a multi-task problem where each
task predicts employee’s occupational level for each given time interval. Likewise, Palshikar
et al. (2016) used a combination of survival analysis, markov models, sequence mining and
classification techniques to analyse the role transitions data of an MNC for studying
relationships among roles, pattern of role allocations, seniority of roles and factors
determining employees’ readiness for a role upgrade. In essence, the maturity of ML
algorithms overlaps with the complexity of HRM processes in such a manner that move from
one-time single learning problems to multi-task learning problems witnesses a shift to
metaheuristics-based algorithms from heuristics-based algorithms.
Despite the movement towards ML integrated HRM, several challenges exist. First
challenge relates to the availability and adequacy of data which serves as training data for
algorithms used for decision-making. MNCs have specialized vendors to track different
processes such as applicant tracking, payroll and employee self-service requests (Tambe
et al., 2019; Van den Heuvel and Bondarouk, 2017); making it difficult to consolidate and
control data. Second challenge pertains to data authenticity arising from the use of external
data (e.g. social media profile data) for applicant profiling and sentiment analysis. Social
media are often used by individuals to exhibit half-truths of their life: supervisor
recommendations get highlighted on LinkedIn, but reprimands are rarely shown. Using
such data may result in misleading decisions. Third challenge pertains to security of
employees’ data that is stored on company’s cloud servers indefinitely, such as social media
profile data, annual performance review conversations and employee grievances handling
data (Garcia-Arroyo and Osca, 2019; Marler and Boudreau, 2017). Fourth challenge relates to
the explainability, fairness and accountability of algorithms. Explainability of algorithms is
strengthened when the algorithm in question is able to provide users with reasons for results.
Understandably, papers in our review have shown preference for decision trees over neural
networks. Fairness is concerned with the capability of algorithms to make unbiased
decisions. Although researchers try to design intelligent algorithms devoid of any bias,
“implicit bias” may creep in. Also referred to as “loopthink” by Cheshire (2017), implicit bias is
defined as the inability of intelligent systems to perform correct re-assessment or revision of
an existing plan of action. Amazon’s decision to scrap its AI-based recruitment tool because it
became biased against women over a period of time confirms this challenge (Dasting, 2018).

Figure 5.
Paradigm of ML
algorithms maturity
with increase in
complexity of HRM
problems
Algorithm accountability emphasizes holding someone responsible for the decisions taken by Machine
automated systems instead of humans. It is a huge ethical and legal concern for which learning and
adequate policies, guidance, regulations and legal frameworks are required.
Undeterred by these challenges, MNCs are embracing ML-AI interventions in their HRM
HRM
functions, for the performance improvements they offer. Conversational chatbots for
repetitive and low-value administrative tasks such as leave management, employee
onboarding, employee grievance handling, basic benefit management and answering
common FAQs have gained acceptance for their accuracy and cost-effectiveness. Further
customization to suit the requirements of employees on the basis of their needs and merits
(e.g. personalizing training content and schedules to an employee’s needs and availability)
can improve HRM’s productivity. In order to do so, MNCs should build digital fluency by
making data sharing, standardization and integration a priority. They should hire experts in
intelligent systems as well as train their own employees in AI driven technology (Andersen,
2017; Angrave et al., 2016; King, 2016). Employees should be encouraged to work on
integration and design related activities to increase their acceptance for decisions made by
ML-AI-algorithms (rewards awarded by systems are likely to be accepted if employees
contribute to performance measurement criteria).

6. Future research directions

The review and preceding discussions make evident the prevalence of ML applications in
recruitment and performance management. Other functions like employee engagement and
training and development, however, require greater research attention. This section identifies
some of the prominent directions for future research, which range from integrating a wider
range of HRM functions with ML applications, to performing a dynamic analysis of the
integration of the two. Both the fields are evolving at a fast pace and their deeper integration
seems inevitable. ML applications can facilitate the transition of HR function, as it takes on
stronger proactive and predictive shades. For a nuanced understanding of how ML could
support the effectiveness of the HR functions, both, the HR and ML practitioners need to work
together. The several advancements in HRM functions (video interviews, virtual reality-based
inductions, etc.) generate diverse forms of data (unstructured data such as videos, graphics,
photos, text) which can be made more meaningful using the relevant ML algorithm(s).
There is substantial evidence showing reliance on heuristics-based algorithms for data-
based decision-making in the HRM field (Cheng and Hackett, 2019). This reliance is currently
prevalent in processes characteristic of single objective and laborious human work (like
screening candidates before final interview, identifying training needs, predicting factors
causing employee turnover, etc.). Future research with metaheuristics and hyperheuristics
(systems automatically combining several algorithms to search an appropriate solution) for
processes involving multiple objectives could be undertaken. This may help the ML-HRM
integration to optimize the performance of complex HRM processes (enhance team
collaborations by suggesting suitable collaborations, identify relevant performance metrics
for each employee, suggesting an optimized mix of variable and fixed compensation plan for
employees across different geographical locations). Systems embedded with cognitive
computing capabilities can also be explored for HRM functions as they endow great
advantages. Cognitive computing systems possess qualities of scalability (capable of
processing huge volume of both structured and unstructured data), interactivity (capable of
learning new variables from new data) and dynamism (formulating, testing and improving
hypotheses on the basis of incoming data without human intervention); owing to which they
provide quick, contextualized and evidence-based decisions (Gupta et al., 2018). Such systems
are already in place in healthcare sector and can be tested for HRM functions to enable better
decision-making.
IJPPM ML-AI-based algorithmic research reviewed in this paper focusses on predicting new
observations on the basis of observed observations. The purpose of such research is making
predictions rather than testing theory. It is different from traditional statistical research
which starts with theory-based hypotheses building and then moves to statistical modelling
and inferencing. Future researchers can capitalise ML-AI methodologies for an exploratory
purpose before moving to hypotheses development and theory building. It may prove useful
in developing stronger foundation for theory building, as modelling is done on real-time
datasets coming directly from the participants of HRM processes. For example: text mining
for capturing employees’ sentiments is a popular application which can also be used to
identify their personality type and whether there is a pattern revealing any linkage between
personality types and sentiments. Sentiments have been known to help predict crucial factors
that explain employees’ behaviour. ML-AI applications can also be helpful for triangulation
purposes, wherein researchers can use a combination of algorithmic and statistical research
for validating their research findings.
A more active role by HRM practitioners would allow for ML-HRM integration to move
beyond its current focus (on increasing efficiency, effectiveness and data-based decision-
making in HRM) towards focussing on strategically desirable outcomes and creating
conditions on which these outcomes depend. We encourage HRM scholars to probe questions
on how organizational strategy and objectives can be driven through ML-integrated HR
practices. For instance, if an organization’s aim is to become more sustainable, it might
benefit from investigating how ML can assist in driving sustainable HRM practices. A mixed
methods approach may be more suitable in this direction, whereby researchers can first
explore the linkages between strategy, objectives and ML-AI applications and then conduct
algorithmic modelling and then again do a qualitative research assessing the impact of ML-
AI integration on the actors and processes involved (a case study, for instance, would be
suitable for such kind of post-hoc assessment).
An alliance between technology and HRM experts is advisable for end-to-end
embeddedness of ML-AI applications in HRM functions. For example: ML is already being
applied to identify training needs of employees and assess employees’ reactions post-training.
A comprehensive application throughout the employee training process would also involve
assessing learner characteristics (employees’ personality, motivation and ability), automating
training sequencing and measuring training effectiveness in terms of learners’ behaviour and
work results. This would ensure greater alignment of algorithmic applications in terms of their
objectives and outputs within HRM functions. Similarly, research is suggested for aligning ML-
AI applications in processes of goal-setting, performance assessment, compensation and
rewards management for a seamless functioning of performance management cycle.
Interdisciplinary research on ethics and technology to answer questions related to privacy
issues, ethical violations and data regulations is a crucial area for future work. Multi-layer
ethical framework integrating legal, societal, firm-level and individual factors for data
acquisition, management and operationalisation needs to be devised. Collaboration is also
suggested for technology and HR leadership to probe the implications of ML-AI adoption on
leadership interventions – how does ML-AI adoption shifts the power dynamics in the
organization, what kind of leadership will be needed to guide employees during transition
towards ML-AI, what are the competencies that employees must build to thrive in an ML-AI
environment, how to upskill employees in these competencies and how to ensure optimum
utilization of technology and human coalescence to drive organizational strategy.

7. Limitations of the study

The purpose of this research was to review the integration of ML in HRM – ML is being
applied in which functions of HRM and what are the objectives of ML applications in
identified HRM functions. Accordingly, broad keywords were used for search such as Machine
“human resource management”, “HRM” and “talent management”. This decision, though learning and
allowed for a wider coverage of HRM functions, may be limiting the nuanced insights that
could emerge by adopting a focussed set of keywords. In a similar vein, a thorough analysis of
HRM
algorithms (keeping in mind their unique nature, characteristics, types and pre-requisites for
applicability) could facilitate a more refined view of their optimum utility for the HRM
functions.

8. Concluding remarks
This review suggests that HRM has embraced ML, albeit it is at a nascent stage and is
receiving attention largely from technology-oriented researchers. ML-AI adoption ensures
quicker, cost-friendly and smarter HRM by enabling data-based decision-making. It brings
efficiency to cost-heavy and time intensive functions like recruitment, selection and
performance management. Simultaneously, it allows HRM to improve people’s performance
by catering to their individual needs (training needs, collaboration needs, etc.); thereby
adding value to the organization with data-based people-related decisions. There is
considerable potential of ML applications for understanding employee behaviour and
facilitating their performance, such as through identifying employees exhibiting
counterproductive workplace behaviours, finding learning agile employees, discovering
emergent leaders, etc. Adequate trainings in ML and AI, secure data structures and strong
regulatory policies are necessary for HRM to utilize these technologies better. Most
importantly, organizations should be mindful that the purpose of integrating these
technological capabilities is not to replace humans, but rather to improve the decision-
making around people. HR managers should ensure that they encourage inclusive growth
and employee development.

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About the authors Machine
Swati Garg is a Research Scholar in the Department of Management Studies, Indian Institute of
Technology Delhi, India. Her research interests are in the area of individual behaviour, organization learning and
behaviour, human resource management, and data analytics. Prior to joining her doctorate programme, HRM
she has worked with KPMG India Pvt. Ltd. as Analyst in their Financial Management Advisory
Services. She completed her Masters in Commerce and Bachelors in Commerce (Honours) from
University of Delhi, India. Swati Garg is the corresponding author and can be contacted at: swatigarg.
iitd@gmail.com
Shuchi Sinha is Assistant Professor at the Indian Institute of Technology Delhi, India. She has taught
and researched in the United Kingdom and India. Her research interests include counterproductive work
behaviours, identity work, mindfulness, and future of work. Her research has been published in
international journals of repute like the Journal of International Business Studies; Culture and
Organization; Journal of Management, Spirituality & Religion; among several others.
Arpan kumar Kar is Associate Professor in IIT Delhi, India. His interests are in data science, digital
transformation, Internet ecosystems, social media and ICT-based policy. He has authored over 100 peer
reviewed articles and edited 7 research monographs. He is the Editor of IJIM Data Insights. He actively
supports reputed knowledge dissemination platforms like IJIM, IJEGR, ISF, ATPEM, GJFSM, ICIS,
PACIS, ECIS and IFIP conferences as associate/coordinating editor or on the editorial board. He has
received numerous recognitions for his research contributions from reputed organizations like Elsevier,
IFIP, TCS, PMI, AIMS, IIT Delhi, BK Birla (BimTech) and IIM Rohtak.
Mauricio Mani is currently pursuing Bachelors of Science in Administration from Department of
Administration Studies in Universidad Nacional Aut
onoma de Mexico. His research interests are in the
area of data science, big data and artificial intelligence. He is currently working on big data analytics for
performance forecast on National Football League for his dissertation.

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