Algorithmic Human Resources Management

This chapter focuses on algorithmic Human Resources Management and provides an overview of the concept itself as well as contemporary developments stemming from the rapid advances in Artificial Intelligence, predictive and prescriptive analytics, big data analysis, natural language processing and other insight-providing technologies, leading to development of autonomous decision-making systems in people management. Starting with structured analysis of the background and rationale of using algorithms in Human Resources Management, it begins with how algorithmic Human Resources Management differs from e-HRM concept and how it fits into the continuum of Human Resources Management digitalisation. Differentiation of algorithm-based Human Resources Management systems is presented according to the level of automation of people-related decision-making, scope of the autonomy of managers and workers (including monitoring and control mechanisms), as well as its role within the Human Resources Management processes (workforce planning, recruitment and selection, performance management and remuneration). While the topic of algorithmic Human Resources Management is still under-researched, review of empirical evidence on the use of algorithms in Human Resources Management is provided, including recent research into the digitalisation of workplaces from European-level organisations. The chapter concludes with the discussion on challenges of the use of algorithms in people-management decisions, including possible biases and ethical considerations.