Can an algorithm replace a manager?

Business Watcher video with Professor Koen Dewettinck

Artificial Intelligence is gradually but steadily spreading into all dimensions of society and business. When it comes to the labour market, there’s rising concern that AI could replace jobs, especially when these involve highly repetitive tasks. But could algorithms also replace managers? What if your performance was assessed by an AI system – and the system decides you don’t deserve a raise or promotion? Koen Dewettinck, Professor of Human Resources Management, talks about the potential role of AI in appraising performance, its applications and its pitfalls.

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Koens starts by emphasising that appraising performance has always been a complex challenge. How do you get a complete and correct view of the contribution of an individual employee? Using AI can enhance that accuracy in two key ways.

video still - Business Watcher - AI and performance

Can an algorithm replace a manager?

In this video, Professor Koen Dewettinck addresses the question of whether AI could replace the role of a manager in appraising the performance of individual team members. He highlights some opportunities and pitfalls and advises companies on how to get started.

Firstly, AI can integrate information from various sources such as 360 feedback, customer and peer input, and manager-employee conversations. This comprehensive approach provides a more accurate view of a team member’s contribution. Secondly, AI can be utilised to anticipate future skills needed in the workforce, aiding in the reskilling and upskilling of employees. It can map current skills and suggest paths for acquiring new ones.

Despite these advantages, Koen acknowledges two potential pitfalls associated with AI in performance management. One concern is the difficulty in explaining decisions made by AI, which may pose challenges in providing specific feedback. Additionally, there's a risk of people hiding behind the system, potentially reducing accountability.

Koen argues that while AI can inform stakeholders and act as a supporting tool, it cannot fully replace the role of a manager or coach. He cautions against completely relying on AI for decision-making, emphasising the importance of human leadership and coaching in creating clarity and managing people effectively.

For companies looking to implement AI in their performance management, Koen suggests a transparent approach where all stakeholders have clear access to data. He recommends starting with small-scale pilots to ensure accurate data collection and meaningful conversations before a full-scale rollout.

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Koen Dewettinck

Koen Dewettinck

Professor HRM & Partner