Balancing the Future of HRM: Navigating the Intersection of AI, Strategic HRM, and Coaching Leadership : scoping literature review

Artificial intelligence (AI) is defined as the concept of machines performing tasks that, if done by humans, would be considered intelligent. In its early stages, AI tried to replicate human thinking and reasoning, primarily to automate tasks previously carried out by humans. Now the emphasis lies in AI not just mimicking human cognitive abilities but rather exceeding them through the facilitation of independent learning, anticipation, and superior inference capabilities. This thesis is centered on the field of human resource management (HRM), with a particular emphasis on performance management and the integration of AI within HRM. In the realm of leadership, coaching leadership is highlighting the role of communication in fostering an empowering environment for individuals and teams to achieve higher performance, aiming to replace traditional control-based leadership practices. The purpose of this master’s thesis is to use the scoping literature review to contribute to the understanding of AI in the context of HRM. This master’s thesis aims to produce information that can be utilized by companies and organizations which are exploring the possibilities of integrating AI into human management practices. The research questions are: 1. “What is the relationship between artificial intelligence and managing people”, 2. “Can coaching leadership support AI and human resource practices such as performance management”, and 3. “How can organizations ensure responsible and ethical use of AI in Human Resource Management”. This master’s thesis was conducted as a scoping literature review. The information retrieval was systematically carried out in September 2023 on the search portals ProQuest, ScienceDirect, Taylor & Francis Online, and Wiley Online Library. The information retrieval yielded 23 search results. At the title level, 15 articles were selected, and their abstracts were read. The full text was read for 9 articles. Using inclusion and exclusion criteria, a total of eight articles were selected for the literature review. These articles were published between 2021 and 2023 in Switzerland, Finland, Australia, England, and through international collaboration. All the articles were in English. The content of the chosen articles was categorized into three main categories: "AI and digitalization in HRM, ethical considerations of AI in HRM, and employee’s engagement and performance. Quality assessments were performed for all selected articles. In this thesis, it was observed that the adoption of AI in HRM goes beyond mere technological enhancements; it's about fostering a supportive environment, enabling personalized development, and reducing biases. These findings collectively support the idea that AI can significantly contribute to HR effectiveness and employee engagement while aligning with ethical and moral standards. The observations made in this literature review can be considered directional. They can also guide further research and educational efforts in the field. Overall, there is still a need for further research to gain a clearer understanding of the most suitable contexts and situations for the deployment of AI in HRM. This understanding is essential to ensure that AI contributes to creating positive and effective work environments, while upholding ethical standards