Beyond the Black Box: Ai Performance Management and Its Consequences for Employee Motivation and Engagement in the It Sector
Year: 2025
Type: article
Abstract: The integration of AI into HR, particularly for performance management, is shifting from traditional, subjective appraisals to a data-driven approach. While this offers benets like objectivity and efciency, its application in the IT sector raises concerns about employee well-being. This paper argues that the "black box" nature of AI systems, along with their potential for bias and dehumanizing effects, can harm intrinsic motivation and engagement among a workforce that values autonomy and purpose. By reviewing literature on Self-Determination Theory and algorithmic management, the paper identies a gap in understanding the psychological impact of these systems. It concludes that for AI to be effective and sustainable in performance management, organizations must move beyond a purely metrics-based approach. The systems should be transparent, designed to support human judgment, and actively cater to the psychological needs of a motivated and engaged IT workforce.
Authors: Akshaya Meenakshi. S, P. Thirumoorthi
Institution: Periyar University
Language: English
Topic: AI and HR Technologies
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4415848983
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