for performance management results in improved accuracy and uniformity through the minimization of human
bias. In like manner Boateng and Agyeman (2023) found that Ghanaian companies using AI in their human
resources processes have greater employees’ accountability and trust in the organizations. But adoption rates
differ as organizations grow, as institutions become digitally responsive and as leaders turn inward. Larger
companies with well-established digital infrastructures tend to use AI more quickly than do small and medium-
sized enterprises (SMEs), whose financial and technical constraints frequently prevent adoption. This trend
supports the Resource-Based View (Barney, 1991) which argues that technological adoption is contingent on
the existence of specific organizational capabilities (for example, capital, expertise, human resources).
Impact on Organizational Efficiency
Organizational efficiency and performance results have been positively influenced by the implementation of
AI-driven systems. Data shows that 75% of employees perceived that AI systems have improved their
productivity while 68% of managers observed improved decision making and operational speed. These
perceptions were also evident across verticals revealing increasing confidence to optimize human resource
management processes via AI. Performance systems powered by AI were attributed to:
Automating reporting tasks, reducing the administrative burden on HR departments.
Providing real-time performance tracking, which allows supervisors to identify productivity trends and
intervene proactively.
Supporting predictive analytics, enabling managers to anticipate performance gaps and recommend
targeted training interventions.
Ensuring fairer assessments, as AI tools rely on quantifiable data rather than subjective judgments.
These findings strengthen Kaplan and Haenlein (2023) who highlighted the fact that AI systems can help
organizations become more efficient and precise in their operation. Additionally, the results are consistent with
Brynjolfsson and McAfee (2023) which found that companies implementing Artificial Intelligence gain in
terms of measurable productivity improvement, and strategic agility. However, there is an underwhelming
concern on the part of a small percentage of employees (around 15%), about whether reliance on automation
could undermine interpersonal feedback and mentorship, which are integral aspects of employee development.
Such a concern resonates with Bostrom (2023), who cautioned against reliance on AI that might, as he points
out, depersonalize work relationships without human intermediation. In summary, however, there is evidence
suggesting that AI integration is a useful tool in optimizing performance management, provided that the
synergy between the technology and human judgment survives.
Employee and Managerial Perceptions
Negative attitudes, though nuanced, between employees and managers toward AI-guided systems were mixed.
Around 70% of respondents agreed that AI-powered performance tools were fairer, more transparent, and more
data-driven than regular appraisal systems. Employees liked that AI eliminated favoritism and enabled them to
monitor their performance metrics themselves. Some 10% had negative perceptions of AI, citing concerns
about privacy, fear of job surveillance, and not knowing whether their data would be secure. These patterns
indicate that AI acceptance is increasing, but trust and digital literacy are still crucial dimensions of adoption.
For qualitative interviews, a very big positive is that they ask the staff for human involvement in feedback and
appraisal discussions. Although employees appreciated the efficiency of AI-based systems, they added, the
value should be taken into account as well, emphasizing emotional intelligence and empathy traits which
machines cannot substitute. In the opinion of managers too, AI should be an aid, not substitute, for human
judgment. These results are in accordance with Trist and Bamforth's (1951) Socio-Technical Systems Theory.
They claim that technology should not replace human elements, but should complement them. They also
support the Technology Acceptance Model (Davis, 1989), indicating here that how employees perceive AI
tools to be useful and easy to use is a key factor in their acceptance. Yet the long-term effect of AI on
performance management might be different only if long-term trust and engagement throughout the process of
adoption can now be established.