HR Management Strategies in the Digital Era: Optimizing Performance and Productivity with Artificial Intelligence and People Analytics

Cuk Jaka Purwanggono, Syafrida Hafni Sahir, Berlianingsih Kusumawati, Fatimah Malini Lubis, Loso Judijanto

Abstract

This structured narrative review examines the challenges organizations face when adapting traditional human resource (HR) practices to the demands of the digital era, with a focus on improving performance and productivity. The study aims to synthesize evidence on HR management strategies that integrate artificial intelligence (AI) and people analytics to support workforce decision-making and development. A desk-based literature review was conducted using academic books and peer-reviewed journal articles on digital HR, AI applications in HR, and people analytics. The reviewed literature was analyzed qualitatively through content analysis to identify recurrent themes, proposed mechanisms, and implementation considerations. The findings suggest that AI-enabled analytics can strengthen data-informed HR planning, enable more targeted employee development, and support strategic interventions such as talent identification and performance management. However, the literature also highlights recurring constraints, including data quality, privacy and ethical risks, skills gaps, and change-management challenges. Overall, the evidence indicates that integrating AI and people analytics can enhance HR’s strategic role and support improvements in employee performance and organizational productivity when implemented with appropriate governance and capability development.

 

Keywords: Artificial intelligence; people analytics; digital HR; HR strategy; workforce performance.

 

DOI https://doi.org/10.55463/issn.1674-2974.52.11.5


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