Abstract

The integration of Artificial Intelligence (AI) into Human Resource Management (HRM) is rapidly transforming performance management systems. This paper investigates the impact of AI-driven performance management – specifically, the use of algorithmic supervisors and data analytics for employee evaluation – on employee engagement and perceptions of organizational justice. Through a mixed-methods approach incorporating a quantitative survey and qualitative interviews, we examine the relationship between AI-driven performance evaluation, employee engagement levels, and the perceived fairness of performance appraisals. The findings reveal a complex interplay, where algorithmic transparency and perceived accuracy can positively influence engagement, but lack of human oversight and concerns about data bias can erode trust and exacerbate feelings of injustice. The study concludes by offering recommendations for responsible implementation of AI in performance management, emphasizing the importance of human-centered design, ethical considerations, and continuous monitoring to mitigate potential negative consequences.