AI-Driven Culture Change in HR Management
AI-Driven Culture Change in HR Management
on
The Role of Human Resource Managers in Changing
Organizational Culture Using AI
MBA PROGRAM
Department of Management Studies
Comilla University
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Course Title: Change & Innovation Management
Course Code: HRM 512
Submitted To:
Aleya Akter
Lecturer
Department of Management Studies
Faculty of Business Studies
Comilla University
Submitted By:
Id No Name Position
22405020 Md. Fahim Muntasir Member
22405034 Naymul Islam Member
22405008 Fahima Akter Group Leader
22405021 Md Meraj Hossain Member
22405036 Md. Morshed Alam Member
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Contents
Executive Summary .................................................................................................................................. 1
Chapter One: Introduction ...................................................................................................................... 2
Chapter Two: Literature Review............................................................................................................. 3
Chapter Three: Research Methodology .................................................................................................. 4
3.1 Research Type ...................................................................................................................................4
3.2 Research Objectives ..........................................................................................................................4
3.3 Data Collection Methods ...................................................................................................................4
Chapter Four: Company Overview ......................................................................................................... 5
4.1 Mission ..............................................................................................................................................5
4.2 Core values ........................................................................................................................................5
4.3 Core Services & Business Sectors.....................................................................................................5
Chapter Five: Data Analysis & Discussion ............................................................................................. 6
5.1 AI Adaptation Steps ..........................................................................................................................6
5.2 AI-Powered Transformation of Human Resource Practices at Abul Khair Group .............................7
5.3 Influence of AI on Organizational Culture........................................................................................9
5.4 Strategic SWOT Analysis of Abul Khair Group’s Use of AI in HR...............................................10
5.5 Advantages of AI in HR of Abul Khair Group ...............................................................................11
5.6 Disadvantages of AI in HR of Abul Khair Group ...........................................................................12
5.7 Ethical Considerations in the Application of AI in Human Resources ...........................................13
5.8 The Upcoming Course of Action for AI in HR Functions of Abul Khair Group............................13
5.9 Challenges to Implement .................................................................................................................14
Chapter Six: Findings, Recommendations & Conclusion ................................................................... 15
6.1 Findings ...........................................................................................................................................15
6.2 Recommendation.............................................................................................................................16
6.3 Conclusion.......................................................................................................................................17
6.5 References .......................................................................................................................................18
List of Abbreviations............................................................................................................................... 19
Contribution of Group Members........................................................................................................... 20
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Executive Summary
This report reports on how HR managers at Abul Khair Group are using AI technologies to
help deliver organizational culture transformation. The report covers four themes: AI in HR,
cultural transformation, ethical challenges, and HR leadership. Thanks to a vast array of
services that make personalization, predictive analytics, and virtual assistants possible, AI
can help with all stages of employment, including recruiting, hiring, training, and
management. Predictive analytics enables organizations to automate repetitive workflows and
provides valuable insight from which HR teams can make informed decisions that improve
timeliness and accuracy.
Similarly, it also highlights risks of artificial intelligence (AI), including bias, privacy issues,
and trust issues, especially when using AI to recruit workers or monitor employee
performance, with HR leaders in charge of safeguarding their human resources, adopting
ethical data practices, and communicating openly with employees.
Abul Khair’s HR personnel have already begun experimenting with AI in areas such as
recruitment and workforce analytics, while early achievements make it clear that more needs
to be done in terms of governance and employee education. The success of the AI effort lies
not only in technology but also in HR, which understands the organization’s values, educates
its employees, and creates a learning culture.
The key recommendations are to train current and future HR employees in AI literacy,
develop ethical frameworks for AI use, align AI use with organizational core values, and pilot
AI tools and management processes with transparency. HR can use AI to build an organized
and high-performing human capital program.
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Chapter One: Introduction
Companies experience substantial changes in the current digital age because of fast-paced
technological developments. Artificial intelligence (AI) stands as one of the most powerful
transformative forces which impacts both industrial structures and worker environments and
business procedure models. AI technologies including machine learning algorithms and
natural language processing combined with predictive analytics and intelligent automation
are being rapidly integrated into business operations. AI has fantastic power to reshape
organizational culture however most research and focus until now have explored operational
benefits rather than cultural transformation in business environments.
The collective values together with beliefs and behaviors and social norms of a workplace
determine the work methodology and personnel interactions in companies. A company
requires both adaptability and strength in culture for achieving innovation along with satisfied
employees and long-term prosperity. Organizations should transform their cultural structures
because AI reshapes work tasks through automation combined with remote teamwork and
advanced decision functions. The changing business landscape generates several complex
situations which need cautious planning.
The cultural transformation occurs under the guidance of Human Resource (HR) managers.
HR professionals who historically managed workforce planning along with recruitment
activities maintained employee relations and developed training programs now lead
organizations through complex digital transformations. The HR function now utilizes AI
technologies to improve talent recruitment and individual employee education programs and
employee monitoring and workplace diversity initiatives. HR managers need to steer the
cultural transition ahead by guaranteeing that staff members have proper preparation and
support to align with their organization's developing principles and goals.
The adoption of Artificial Intelligence in workplaces creates ethical challenges in data privacy
and algorithmic bias, and job displacement issues in the organization. HR managers need to
handle these concerns alongside their duty to develop workplace cultures built on trust
together with transparency and accountability. The process requires establishing ethical
requirements for AI implementation together with technological and communication
initiatives about future workplace transformations.
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Chapter Two: Literature Review
In recent years, the convergence of artificial intelligence (AI) and human resource
management (HRM) has attracted significant interest. Human resources managers are at the
heart of driving organizational culture, and the application of AI tools creates new
possibilities for constructing and reconstructing this culture. This literature review examines
the evolving role of HR managers as they use AI to create cultural change in organizations.
AI has improved the practices of human resource management (HRM) through data-driven
recruitment processes, performance appraisal, and employee engagement facilitation. Dery et
al. (2019) claim AI's ability to facilitate making decisions increases the chances of employing
cultural data analytics and targeted solutions by HR managers. AI enhances the efficiency of
various tasks in human resource management, but also increases the importance of human
resource managers in organizational culture.
One of the most notable impacts of artificial intelligence (AI) is on employee training
programs. According to Gupta and Pande (2023), HR managers can deploy AI to tailor
training to the cultural parameters of the company. This not only supports the achievement of
skills but also supports the desired culture of the organization.
HR managers' future roles in shaping organizational culture with the help of AI are a vibrant
and dynamic space. With AI tools, HR professionals are best equipped to magnify employee
involvement, automate training sessions, and address ethical concerns. As companies go on
to continue innovating and enhancing the digital age, strategic involvement of HR managers
in altering organizational culture will be essential in developing an effective organizational
space.
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Chapter Three: Research Methodology
The section presents the methods for studying how Human Resource (HR) managers
implement artificial intelligence (AI) in cultural transformation of organizations. The section
explains the research method together with its objectives and information gathering
approaches.
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Chapter Four: Company Overview
As a corporate entity, Abul Khair Group (AKG) stands as Bangladesh's premier diversified
industrial organization. The late Abul Khair established Abul Khair Group in Chittagong in
1953 through a tobacco trading business, which developed into a major industrial force in the
country. The group maintains its headquarters in both Dhaka and Chittagong while operating
its business across steel, cement, consumer goods, dairy, tea, ceramics, and additional
industries.
The company has established a long-lasting position through industrial excellence and
innovative quality leadership. The organization operates through its three main subsidiaries:
Abul Khair Steel positions itself as the top steel manufacturer in the nation, and Shah Cement
owns the world’s biggest vertical roller mill, besides producing consumer brands which
include Dairy products, beverages, snacks, and Seylon Tea. Family ownership extends to
present management by the sons of the founder, resulting in employment of tens of thousands
of workers across the nation.
The company actively demonstrates corporate social responsibility by providing free medical
oxygen services to people during the COVID-19 pandemic. The industrial and economic
growth of Bangladesh benefits greatly from Abul Khair Group through its emphasis on
vertical integration while promoting sustainability and benefiting local communities.
4.1 Mission
Their mission is to enrich the lives of our community by providing healthy, nutritious food
and home-building solutions. They would like to manufacture and source international
standard healthy food products and make them easily accessible for a large base of consumers.
They would also like to take on a pioneering role of bringing advanced construction
technologies and products to the Bangladesh market in line with developed economies to
improve the quality of life for our customers. They would like to contribute in the
infrastructure development of the country by making world-class construction materials and
solutions available.
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3. Cement
4. Logistics and trading
5. Ceramics and Sanitary ware
6. Fast-moving consumer goods
7. Education and CSR
The Human Resource operations at Abul Khair Group accelerate performance through the
application of Artificial Intelligence technology. Artificial Intelligence serves to improve staff
experiences, thereby enabling the HR team to dedicate their efforts to crucial tasks instead of
performing redundant daily work.
The AI system delivers immediate answers to regular queries from new employees when they
join the organization. New team members gain assurance through this time-saving
functionality. The system collects performance and feedback measurements during yearly
operations, which enables improved evaluation assessments and individualized training
development.
Generative AI tools assist the Abul Khair Group in generating job descriptions while handling
candidate communication tasks without human involvement. Their human resources team
acquires additional time to concentrate on innovative long-term initiatives that advance
workforce recruitment needs and employee work satisfaction.
AI provides Abul Khair Group with additional capabilities to enhance its existing software-
based human resources management system. The HR team dedicates its extra time to strategy
development rather than documentation, which enables it to benefit the entire organization.
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5.2 AI-Powered Transformation of Human Resource Practices at Abul Khair
Group
Programmed software through AI analyzes resumes for screening applications, thus reducing
manual labor while expediting the recruitment process. The system utilizes artificial
intelligence to examine applications together with resumes, which generates
recommendations of suitable candidates through abilities and background, and qualifications
assessment. AI algorithms play a role and candidate matching to produce suitable shortlists
because they analyze human resources data and predictive employment models.
2. Employee Onboarding
AI systems review survey responses together with feedback obtained from employees, while
also scanning internal communication systems to obtain their work-related emotions. Using
this information, HR professionals can resolve problems instantly while also enhancing
employee bonds.
4. Performance Management
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Real-time performance data offered by AI helps HR teams enable managers to identify
specific areas requiring employee support and acknowledgments. Objective performance data
about output and results serves to lower biases in performance reviews, thus promoting fair
and transparent evaluation procedures.
AI systems identify training recommendations according to employee skills and roles, and
career targets, thus fostering ongoing employee growth while tracking employee abilities to
detect skill deficiencies, which permits HR to launch customized development programs that
boost workforce potential.
6. Employee Retention
Artificial intelligence tools at the HR team assess employee data to forecast which workers
will likely resign so proactive retention tactics can be designed, including specific career
pathway plans and added workplace engagement programs. AI software allows Akij Group
to customize benefit packages according to employee preferences, thus they maintain longer
employee retention by providing personalized packages.
The HR team at Akij Group benefits from full analytics metrics concerning employee
retention data, as well as recruitment success rates and worker performance that lead to better
organization-wide decisions. An AI system produces uniform automated HR reports that both
minimize staff time requirements and present accessible HR information to executive
management.
The system enables Akij Group to deliver payment and benefit tax and overtime computation
outputs that are accurate and timely. Customer salaries and benefits are evaluated through
industry compensation analysis that enables the company to attract skilled employees
effectively.
The business growth along with market tendencies and seasonal fluctuations can be analyzed
by Artificial Intelligence tools to forecast staffing requirements. A proactive HR strategy
enables proper planning of staffing needs together with efficient recruitment operations. The
system performs workload allocation by analyzing employee capacities with productivity
levels and workload distributions to achieve maximum team performance.
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5.3 Influence of AI on Organizational Culture
Cultural Insight & Sentiment
The analysis of employee surveys, together with internal messages and feedback, is done by
HR managers through the use of AI tools. Early problem detection through this method
enables organizations to improve transparency and trust within their culture.
Fairness in HR Processes
Artificial intelligence offers HR the means to remove unconscious bias from recruitment
processes, along with performance evaluation techniques. The system helps organizations
create an environment based on ethical decisions and merit-based performance.
Personalized Learning
AI technology provides customized training content that incorporates corporate values as well
as personalized employee learning requirements. The organizational principles become
stronger when employees practice these behaviors.
Continuous Feedback
AI systems can identify employee disengagement as well as project future employee attrition
risks. The obtained information enables HR to prevent morale problems and preserve team
cohesion.
Innovation Culture
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Internal Communication
AI-powered chatbots, together with digital assistants, provide employees with continuous
access to automated communication channels that run 24 hours a day. The implementation of
these measures’ aids reduction of miscommunication across diverse and extensive groups of
workers.
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5.5 Advantages of AI in HR of Abul Khair Group
1. Efficient Recruitment:
The system analyzes thousands of resumes in seconds before selecting job-suited candidates.
The process becomes much faster during recruitment, which ends up boosting recruiter
performance. This recruitment technique proves valuable to Abul Khair Group since it
operates across three industries, including steel production and both FMCG manufacturing
and cement manufacturing.
2. Bias Reduction:
The proper training of AI algorithms allows them to analyze candidates through skill and
experience, and behavioral assessments, which supports diversity by eradicating gender or
age or ethnicity biases.
3. Data-Driven Decision-Making:
The system provides custom training sequences that match employees to their developers,
together with organizational objectives. AI systems at manufacturing facilities, together with
sales divisions, deliver personalized skill improvement that matches employees' professional
ideals and enterprise requirements.
Utilizing AI chatbots as well as virtual assistants leads to constant user support for HR
services, which increases access to these services.
7. Workforce Planning:
Through AI, organizations can predict future workforce requirements and direct assets for
maximum efficiency and eliminate operational weaknesses.
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5.6 Disadvantages of AI in HR of Abul Khair Group
1. Loss of Human Touch:
The lack of emotional intelligence in AI produces a system that should not be used to address
significant HR issues regarding conflict resolution, as well as employee grievances, since
such matters need human interaction to develop trust.
AI needs extensive employee personal information to function, but this practice creates major
data protection risks and privacy breaches, and disturbs workplace ethics for processing
employee-sensitive information.
4. Resistance to Change:
Employees, along with managers, demonstrate resistance toward using AI-based systems
because they worry about job replacement and show mistrust for technology and lack
experience with the new system. Successful implementation of change management
strategies, accompanied by proper training, ensures employees overcome the resistance to
new procedures.
5. Overdependence on Technology:
Overtreating in AI can diminish human decision-making, and if the AI system fails or bugs,
it can delay HR process. The balance of automation and human judgment is important to
mitigate such risk.
6. Complexity in Integration:
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5.7 Ethical Considerations in the Application of AI in Human Resources
1. Fair and Objective Decision-Making
AI can reduce human bias in hiring, promotions, and evaluations by using consistent, data-
driven criteria, promoting equality and meritocracy.
2. Improved Transparency
AI allows the HR department to offer its services 24/7 through chatbots and advanced
personalization, such as personalized training and quicker query resolution, which ensures
fairness and inclusivity.
AI can identify early symptoms of employee burnout, stress, or disengagement from work by
monitoring behaviors and notifying HR to provide timely assistance.
Ethically designed AI systems can improve data privacy by implementing strict access
protocols and uniform security measures, thereby better safeguarding employee information.
With AI, HR will be able to find even better candidates faster by instantly analyzing resumes,
predicting performance, and identifying people who share the company values and culture.
And it may help reduce bias that creeps into hiring decisions.
The AI will generate individual learning pathways for each of its employees according to his
or her role, goals, and proficiency levels. That will help entry-level workers advance more
quickly and stay prepared for future roles within the company.
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3. Instant Support for Employees via AI
Employees can be provided with immediate responses at any time of the day with the use of
mobile devices to HR related queries concerning policies, salaries, or even leave.
AI technology will analyze the turnover rate, skill deficiencies emerging trends in the
industry, which will optimize employee placement and forecast future staffing requirements
to improve overall productivity.
Using feedback, surveys, and behavioral patterns, AI detects the emotions of employees,
alerting HR personnel whenever someone appears to be off or on the verge of leaving, so
problems can be solved before they are escalated.
No need for annual review. Intelligent automation will help in performance monitoring and
management can send continuous feedback and improvement suggestions to employees.
AI will use big data to track team behavior, culture fit, and employee sentiment to enable the
HR department to get access to these advanced analytics to help build, maintain a successful
workplace culture across all units of the organization.
The company will regulate and control the ethical treatment of employee data; provide equity
protection for the implementation of AI as a factor of trust within the company, and
implement transparency protocols as part of AI developments in the company
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Chapter Six: Findings, Recommendations & Conclusion
6.1 Findings
• Organizational strategy creates a greater impact on AI-augmented HRM combined
with sustainable performance than digital culture does.
• HRM's strategic role in facilitating human-centric AI adoption.
• AI changes communication, leadership, and work behaviors.
• Technological readiness, together with supportive systems, acts as a major driver for
adopting AI solutions in HR operations.
• The human resources department functions to mediate communication between
human workers and machine systems.
• HRM has the potential to improve the human-choreographed usage of AI systems
through employee training programs, along with trust-building strategies and
collaborative decision-making support regarding AI implementation. This document
demonstrates how HR professionals must develop cultures within organizations to
accept AI adoption.
• Using AI technology in talent management systems will lead to enhanced employee
engagement, which drives better organizational performance. The various human
resources management functions get support from AI technology across recruitment
activities and worker training, and workload administration processes.
• The implementation success of AI in HRM depends heavily on how organizations
embrace their culture, as well as leadership backing and proper employee training. AI
adoption faces major challenges because organizations resist change, and their
employees do not trust artificial intelligence systems.
• AI technologies deliver customized training initiatives and development solutions that
respond to worker needs to build sustained learning environments at work. The system
enhances company diversity alongside promoting inclusivity through unbiased human
resource operations.
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6.2 Recommendation
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6.3 Conclusion
Artificial intelligence is revolutionizing the landscape of Human Resource Management as it
represents an unprecedented opportunity for new forms of improvement in processes, new
business models, and new ways of doing things. Here at Abul Khair Group, HR Professionals
have started using AI-based systems to reduce costs, make better decisions, and create a place
that is characterized by innovation, flexibility, and creativity. But all success comes not only
from using technology, it comes from following human values, ethical principles, and
transparent leadership. Right now, it’s not enough to push technology beyond its boundaries.
HR needs to be on a proactive path to sustain a healthy organizational culture in the age of
AI, so that machine learning enhances human touch rather than replaces it. By championing
responsible AI use, cultivating employee trust, and continually learning, HR can drive the
organization towards a future in which digital innovation and human integrity go hand-in-
hand.
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6.5 References
Dery, K., Kolb, D., & Kock, N. (2019). The role of artificial intelligence in HRM: A literature
review. Human Resource Management Review, 29(4), 100-114.
Gupta, R., & Pande, S. (2023). Personalizing learning experiences through AI: Implications
for organizational culture. Journal of Business Research, 138, 123-134.
Kavanagh, M. J., & Thite, M. (2021). Human Resource Information Systems: Basics,
Applications, and Future Directions (4th ed.). SAGE Publications.
Smith, J., Johnson, L., & Brown, A. (2024). Navigating ethical challenges in AI-driven
HRM. International Journal of Human Resource Management, 35(1), 56-74.
Hossin, M. S., Ulfy, M. A., Ali, I., & Karim, M. W. (2021). Challenges in adopting artificial
intelligence (AI) in HRM practices: A study on Bangladesh perspective. Zenodo.
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List of Abbreviations
AI Artificial Intelligence
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Contribution of Group Members
Id No Name Contribution
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