ALGORITHMIC DECISION-MAKING IN HR: NAVIGATING FAIRNESS, TRANSPARENCY, AND GOVERNANCE IN THE AGE OF AI

Abstract

In human resources, the way companies hire, promote, and evaluate employees is changing because they are starting to use computer programs and Artificial Intelligence (AI) to make decisions. There are new ways to make operations more efficient and decisions more accurate. This research dives into how algorithms are being woven into HR activities. It examines these changes' effects, problems, and how everything is managed. This paper dives into the changing HR practices like hiring, keeping employees, and evaluating their work. It does so by mixing a review of existing and case studies and diving into theories to see how digital tools are changing the game. Research has shown that AI systems bring significant advantages by making work processes smoother and cutting down on unfairness with insights based on data. As an example, tools powered by AI lead to quicker hiring steps, better rates of keeping workers, and a fairer system for evaluating them. Despite this, significant hurdles like unfair algorithms, hidden operations, and weak spots in keeping data safe bring significant dangers. Strict rules around managing information are crucial to tackling these issues. This helps ensure that everything is fair and responsible and follows rules like GDPR and CCPA. New techs like explainable AI and blockchain are key to solving big problems. Explainable AI makes it easier to understand how decisions are made, and blockchain keeps track of data safely. Looking closely at Tech Inc. shows us how these advances blend the new with the right doing, illuminating their power to mix innovation and ethics. The research highlights how important it is always to keep an eye on things, have strong ethical rules, and keep training people so that we get the most out of making decisions with algorithms. When companies build trust and stick to the rules, they can use these tools to get ahead in a world about data. Companies now use complex computer programs to make choices when hiring and managing people. They need to make sure they are handling this data right and can explain how these systems make their decisions. With the rise of new technology like blockchain, they are finding new ways to do this, especially when bringing new people on board. They must also keep up with laws like the GDPR in Europe and the CCPA in California to ensure they do everything by the book.