Name : Jihan Ranjani Saputri
Student Id : 2110523010
Course : Seminar Human Reource Management
Reshaping HRM: A Journey Through Evolution and Recruiters' Perspectives on Recruitment and Selection
through AI Practices and Organizational Behavior
1. Introduction
Over the course of history, the field of human resources has undergone significant evolution, adapting to
societal changes and technological advancements. From its roots in the 18th century when physical strength
was the primary criterion for employment, to the emergence of personnel departments and the eventual
transformation into modern Human Resources Management (HRM), the role of managing and nurturing the
workforce has continually evolved. In recent years, the advent of digital technology and globalization has
further revolutionized the HRM landscape. This paper explores the journey of human resources from its origins
to its current state in the digital era, emphasizing the interplay of technology, organizational behavior, and
strategic management in shaping HRM practices.
2. Discussion
As time goes by, so many changes occur in every sector, one of which is human resources, where human
resources are an important part of the organisation and have evolved since the 18th century before the
revolutionary period began with the slavery system with a relationship between employees and employers
where physical strength became the benchmark for workers and then after the revolutionary period the term
personnel department appeared, employee development began to be considered to increase productivity, job
positioning and employee training but at this time engineering was still given more attention and priority until
finally in 1960 personnel management appeared, where humans were the core factor and several organisations
began to adopt the HRM department. Personnel departments, which undertook to keep records such as wages,
leaves, absenteeism, and the number of days they were late (Drucker, 1999: 195; Deringöl, 2010: 3) Personnel
departments, or Human Resources (HR) departments as they are commonly known, have always had an
important role in overseeing employee information and labour-related data. This includes tasks such as
recording salaries, recording absences, monitoring sick leave, and recording tardiness. Twenty years later, the
influence of globalisation has resulted in the gradual disappearance of personnel management and the birth of
human resources.
During the period of globalisation, which resulted in technological advances to become an important part of
organisations, including human resources, which were affected by technology in the use of more efficient and
detailed human resource activities. In the 1980s, the human resource function began to use information
technology for managerial processes, especially payroll processing, and later organisations expanded the scope
of human resource practices such as talent acquisition, performance, and compensation management. Today,
there is a more complex structure (Esen and Erdoğmuş, 2014: 9). Until the transformation of hrm into e-hrm
was formed. Ruël et al. (2004) first defined E-HRM as a way to implement HRM strategies, policies and
practices in organisations through the support of these technologies in a conscious and purposeful manner with
the introduction of full use of web technologies. As per their definition, E-HRM means executing Human
Resource Management (HRM) strategies, policies, and practices in the enterprise with targeted and purposeful
technological support, especially through the full use of web technologies. This description highlights how
technology, especially web-based technology, is used to make HRM functions and processes easier and better.
At the beginning of the year 2000 where the peak of globalisation which has become one of the factors of
human resource development gave rise to strategic HRM. Strategic HRM is the integration of HRM activities
with strategic goals and objectives to develop an organisational structure that strengthens flexibility and
innovation and thus improves organisational performance (Saruhan and Yıldız, 2012: 114). Strategic HRM
recognises that people are a very important resource for every organisation. By managing them strategically,
organisations can gain a competitive advantage in the market. This approach involves not only the HR
department, but also the active involvement of senior and executive management in the planning and
implementation of HR strategies that are closely linked to the overall organisational strategy. Until now,
technological changes continue to occur along with digital transformation or arguably entering the digital era
where technology users continue to increase. This transformation certainly affects the function and existence
of human resources such as planning resources, recruitment and selection processes to training and
development of employee performance to be more effective and efficient and minimise costs in order to keep
up with technological advances and compete with others. Thus, digital HRM basically manages all HRM
activities through technology, applications and the internet. On the other hand, in this digital era, innovations
must continue to be developed.
Furthermore, the description of the development of human resources above also raises several perspectives
from all factors on human resources, one of which is the perspective of organizational behaviour starting with
Job dissatisfaction, lack of trust, and resignation combined with inappropriate organizational actions can result
in organizational behaviour. Many people in various organisations suffer from trust issues. There are several
reasons for this, including lay-offs resulting from negative workplace behaviour, employee disengagement,
conflict between work and family, high and increasing distrust in the workplace due to broken promises
regarding health insurance for active workers and pensions, and a decline in job satisfaction due to issues such
as bullying.
On the other hand, how people are managed matters for organizational performance well first, People play a
crucial role in organizational performance, as several indicators show. From an organizational behavior
perspective, humans are social creatures. They value their relationships with others and are affected by what
others say and do, which shapes their identity. As a result, perceptions, preferences, and attitudes are at least
partly endogenous (Salancik and Pfeffer, 1978). Moreover, people value fairness and honesty, which generate
resources for punishment. Second, it is important to reward not only individuals but also organizational and
group performance. Individual rewards in the workplace can create a sense of injustice. Although some
economists have noted that collective rewards run into the free- riding problem (Williamson, 1985, chap. 10).
Third, Related to the prespective of organizational behavior the process of laying off employees can lead to a
variety of issues and challenges within a company. increased stress and uncertainty among the remaining
workforce, disrupted social relationships in the workplace, and the perception of job insecurity. All of these
factors can influence employees' commitment and job performance, ultimately affecting the overall
performance of the company. From an organizational behavior perspective, layoffs create several problems,
which is why it is scarcely surprising that comprehensive reviews of the evidence find that layoffs frequently
don’t increase stock price, productivity, profitability, innovation, quality, or other measures of company
performance (Cascio, 2002). Fouth, training, information sharing and decentralized, team-based decision
making. Training can improve skills and build competencies. Sharing information can help people make better
work decisions by providing the data they need. Decentralisation facilitates the use of information and training
to enhance the effectiveness of work processes, as it allows for the necessary flexibility to adapt. Fifth, People
differ not only in their social abilities, which impact their success in collaborations, but also in their
performance under varied social conditions. These differences arise because some individuals are better at
adapting and adjusting to diverse social contexts than others. Therefore, job performance and turnover are
influenced not only by personal characteristics, but also by the working environment. Conversely, poor job
performance may not be solely due to a person's skills or motivation, but can also be affected by the resources
provided by the organization and the job's structure. Hence, appraisals of individual employment, signifying
personal performance and competence as permanent characteristics, are probably inadequate measures.
Now that we've discussed how people management impacts organisational performance, let's explore why
some organisations fail to implement these practices. Could it be because high-commitment work practices
are prohibitively expensive?Indeed, necessary costs may include training for both managers and employees,
as well as a complementary system that incorporates high-performance management practices (Shaw, 2006).
This raises two problems: numerous studies comparing the productivity of companies using high-commitment
work systems with those that do not have not found significant financial advantages that would outweigh the
expected expenses.Additionally, preventing some of the worst managerial behaviours that result in job
discontent, lack of trust, and disinterest doesn't require significant expenses. According to Levine and Tyson's
study about the significance of external conditions likely apply to other elements of high-commitment
management practices and that their analysis may not encompass all the reasons why productivity-enhancing
management innovations are not universally adopted. within the financial industry, including investment
analysts and related professionals, there is often a lack of support or sympathy for companies that choose to
implement high-commitment work practices. The reason for this lack of support is not explained in the article,
but it implies that these financial stakeholders may have reservations about such firms. One possible
explanation for their reluctance to support these companies is that they perceive them as prioritizing the well-
being and interests of their employees over the financial interests of their shareholders.
Given the significance of these theories and the existence of alternative perspectives on human behaviour
beyond traditional human resource economics, there is considerable scope to establish a more intricate and
multifaceted outlook on human resource management, specifically in terms of recruiters' perspective towards
technological advancements such as artificial intelligence throughout the recruitment and selection procedure.
Technological changes will not stop, these changes continue to change over time with technological
innovations that are increasingly advanced and even facilitate human activities or activities, one of which is
artificial intelligence which has a major influence on society and the world of work such as the performance
of human resources during the recruitment and selection process. Artificial intelligence (AI) is being used
extensively by recruiters in a variety of industries and has now become one of the latest trends in the
recruitment industry (Alam et al., 2020; Upadhyay & Khandelwal, 2018; Nugent & Scott-Parker, 2021).
Besides, AI also increases the productivity of recruiters' performance so that it becomes more effective and
efficient. While research projects on AI in recruitment have mainly focused on AI technologies (such as natural
language pro- cessing, machine vision, automation, and augmentation) and their impact on the recruitment and
selection process (Hemalatha et al., 2021; Kong et al., 2021) These studies would investigate how AI tools and
techniques, such as natural language processing (NLP) and machine vision, are integrated into the recruitment
process and the consequences or benefits they bring, such as streamlining candidate screening, improving
resume analysis, or enhancing the overall selection process.
Human resource planning involves analysis of the staffing impacts of industry or organisational growth,
decline or diversification and consequent development of corresponding recruitment, re-skilling, outsourcing,
re-deployment or redundancy strategies. Basically, the need for recruitment is determined by forecasting the
number of employees needed in the future and making allowance for labour turnover rates during that period
(generally based on past turnover rates), as well as the impact of transfers, promotions and planned
redundancies. The main purpose of recruitment is to locate the ideal individual with the fitting qualifications
at just the right moment and select them. Since resumes can be dispatched to possible employers in seconds
and examined very fast, recruitment and selection occur in three main stages: sourcing, screening, and
selection. Sourcing, the initial stage, is the utilization of one or more approaches to unite talented job seekers
with employment opportunities within the organization. Screening is when they look through job applications
to see which people are a good fit for the job. They look at things like skills, experience, personality, and how
long they will stay in the job. Selection is when they choose the best person for the position. Many companies
now use AI to help them with recruitment. It can also assess the current workforce and help the HR team make
better hiring decisions (Michailidis, 2018). Job descriptions can be improved by using language that is free
from bias and is targeted to a specific audience. To review resumes, a good Applicant Tracking System (ATS)
can pre-screen applications, filter resumes, and automatically detect patterns and keywords to identify potential
suitable applicants more accurately than traditional methods. A chatbot can easily replace a human interviewer
during job interviews. Pre-onboarding tasks can also be automated if fully implemented, automating most, if
not all, administrative hiring tasks. Yet many companies, recruiters or recruitment managers still only have
organizational or administrative responsibilities. However, this led to an increase in the number of applicants,
and hiring the best-fit talent became a challenge over time for HR (Michailidis, 2018).
There are also many HRM-related issues/actions that are likely to be associated with specific crises that impact
organizations and societies, as well as individuals, in unique ways (Milburn, Schuler, & Watson, 1983a,
1983b). responding to the crises theme for preparation and management facing recent pandemic and its
profound impacts on society, work, and business practices have implications for the recruitment and selection
process in HRM. during the COVID-19 pandemic, many organizations responded with stay-at-home work
restrictions that resulted in employees having to work from home. This in turn led to organizations revising
their compensation policies to better reflect compensation levels associated with the local labour market.
Although making these adjustments of many HRM policies and practices can be managed as the crisis unfolds,
it may be more effective to plan and prepare for the occurrence of various crises (Nunamker, Nunamaker Jr.,
Weber, & Chen, 1989; Williams, Gruber, Sutcliffe, Shepherd, & Zhao, 2017).
3. Closing
The development of managing personnel has been an ever-changing course that started in the 18th century
with emphasis on physical prowess among the workforce. Gradually, personnel management advanced from
the slavery period towards the introduction of the personnel department, and then into human resources
management by the mid-20th century. HR departments now do much more than just keep records. They carry
out a wide range of human resource activities.
Globalization and technological advances have greatly impacted HR management. The use of information
technology in HR processes, the introduction of strategic HR management, and the recent shift to digital HR
management all reflect the impact of these factors. Strategic HRM emphasises aligning HR practices with
company goals for a competitive advantage.
However, there are still some difficulties. Problems with trust, job dissatisfaction and weak company responses
can result in undesirable behaviour. While high-commitment work practices and technological advancements,
such as artificial intelligence, can increase organisational performance, they also have drawbacks and
challenges.
One of the most important current developments in HRM is the increased use of artificial intelligence (AI) in
hiring and selection. AI tools, including natural language processing and machine vision, have improved the
efficiency and effectiveness of the recruitment process. Technology has also revolutionized HR planning, with
tools like Applicant Tracking Systems (ATS) and chatbots simplifying numerous tasks.
During crises like the COVID-19 pandemic, HRM needed to quickly adjust to remote work, updated
compensation policies, and modified hiring procedures. The article recommends that proactive planning and
preparation for different crises are more effective than making changes as they occur.
References
Horodyski, P. (2023). Recruiter’s perception of artificial intelligence (AI)-based tools in recruitment. Elsevier.
Bratton, J., & Gold, J. (1999). Human Resource Management Theory and practice.
Pfeffer, J. (2007). Human Resources from an Organizational Behavior Perspective: Some Paradoxes
Explained. Journal of Economic Perspectives, 115–134.
Yilmaz, A. (2023). The Evolution of Human Resource Management in Managerial Thinking. Journal of
Society, 35-50.
Cookea, F. L., Schulerb, R., & Varmac, A. (2020). Human resource management research and practice in Asia:
Past, T present and future. Elsevier.
