A STUDY ON EMPLOYEE PERCEPTION TOWARDS AI-ENABLED PERFORMANCE APPRAISAL SYSTEM AT SS TRADERS
Deepika1, , D. Gunasundari 2
Deepika
Assistant Proffesor, Department of Management Studies,
Kangeyam Institute of Technology, Kangeyam – 638108,
Tamilnadu, India
Gunasundari
II-MBA,
Department of Management Studies,
Kangeyam Institute of Technology,
Kangeyam – 638108,
Tamilnadu, India
ABSTRACT
The rapid advancement of Artificial Intelligence (AI) has significantly transformed human resource management practices, particularly performance appraisal systems. Traditional performance appraisal methods often suffer from subjectivity, bias, and lack of consistency, which may affect employee satisfaction and organizational effectiveness. To overcome these limitations, many organizations are adopting AI-enabled performance appraisal systems that use data analytics, automation, and objective evaluation techniques. The present study aims to analyze employee perception towards the AI-enabled performance appraisal system at SS Traders and to examine its impact on employee satisfaction and engagement. The study is descriptive in nature and is based on both primary and secondary data. Primary data were collected from 100 employees using a structured questionnaire, while secondary data were gathered from journals, research articles, and online sources related to AI and human resource management. Statistical tools such as percentage analysis, descriptive statistics, correlation, regression, and ANOVA were used to analyze the data. The findings of the study reveal that a majority of employees have a positive perception towards the AI-enabled performance appraisal system and report high levels of satisfaction and engagement. The results also show a significant positive relationship between employee engagement and satisfaction with the appraisal system. The study concludes that AI-enabled performance appraisal systems enhance transparency, reduce bias, and improve employee confidence. The research highlights the importance of employee awareness, ethical AI practices, and human involvement to ensure effective implementation of AI- based appraisal systems in organizations.
Keywords: Artificial Intelligence, Performance Appraisal, Employee Perception, Employee Satisfaction, Human Resource Management
