Reimagining Performance Management in the Era of Artificial Intelligence: Industry Insights and Innovative Practices

Title: Global Perspectives and Emerging Dimensions of Multidisciplinary Research

Chief Editors: Dr. Jagdish Kumar Sahu and Ms. Machado Sneha John

Associate Editors: Dr. Sree Lakshmi Ammanamanchi and Dr. Divya R. Patel

Co-Editors: Mr. Hruthik J. R and Dr. Shishira Srinivasa

ISBN: 978-93-7183-027-0

Chapter: 11

DOI: https://doi.org/10.59646/833/11

Authors: Ms. Valli. R, Ms. Nivetha. G, Ms. Petula. PR, and Dr. P. Mohana

Abstract

Performance Management Systems (PMS) are changing as organisations look for ways to make performance evaluation, feedback and employee development more relevant to the way work is done today. The increased use of Artificial Intelligence (AI) has added a new dimension to this change, with organisations using AI for continuous feedback, performance analysis, employee coaching, skills development and, in some cases, evaluating AI adoption itself. This paper examines emerging PMS practices and unique organisational approaches across eight organisations – TCS, Accenture, Infosys and Prudential, along with Amazon, Microsoft, Google and Meta. Using secondary research from company reports, organisational case studies and business and workplace publications, the paper compares how these organisations are incorporating AI into different parts of performance management. The analysis shows that AI is not used in the same way across organisations. While TCS uses AI-based analytics within continuous performance management, Accenture uses AI to support feedback, Infosys connects performance with skills and career development, and Prudential uses AI coaching to support performance conversations. Other organisations have gone further by making AI adoption relevant to performance expectations, as seen in the reported practices of Amazon, Microsoft and Google. Meta provides a different point of view by moving away from measuring AI usage itself and placing greater emphasis on the quality, speed, complexity and scope of employee contributions. Overall, the findings suggest that the future of PMS may not simply depend on how much AI employees use, but on how effectively organisations use AI to support meaningful performance, feedback and development.

Keywords: Performance Management System (PMS), Artificial Intelligence (AI), Continuous Feedback, Employee Performance Evaluation, AI-enabled Coaching, Employee Development, Industry Practices.