AI-Supported Performance Appraisal Systems: Implications for Transparency and Employee Trust with Special Reference to Coimbatore Districts
Author : Dr. CS Senthilkumar
Abstract :
Background & Objectives: Artificial Intelligence (AI) is increasingly transforming Human Resource Management (HRM), with performance appraisal emerging as one of the most impacted domains. AI-supported appraisal systems promise greater accuracy, data-driven insights and continuous performance monitoring; however, their implications for transparency and employee trust remain underexplored in the Indian context. This study examines the role of AI-enabled performance appraisal systems in shaping perceptions of fairness, clarity and trust among employees in selected organizations across Coimbatore district. The findings reveal that while AI-driven appraisals enhance consistency and reduce human subjectivity, employee trust is significantly influenced by the level of transparency, communication and opportunities for human review. The study contributes to the growing body of literature on AI in HRM by providing region-specific insights and by highlighting the need for balanced human–AI collaboration. It further offers practical recommendations for organizations in Coimbatore to design ethical, transparent and employee-centric AI-supported appraisal systems.
Research Design & Samples: This descriptive research employed a simple random sampling method, surveying 60 employees (both male and female) from the Coimbatore district. The study utilized a mixed-methods approach, combining quantitative data from a survey and qualitative insights from in-depth interviews with industry experts.
Tools of Data Collection: Data was collected using a self-structured interview schedule to obtain personal profiles.
Findings: The findings reveal that while AI-driven appraisals enhance consistency and reduce human subjectivity, employee trust is significantly influenced by the level of transparency, communication, and opportunities for human review. The study contributes to the growing body of literature on AI in HRM by providing region-specific insights and by highlighting the need for balanced human–AI collaboration.
Keywords :
Artificial Intelligence (AI) and Human Resource Management (HRM).
