It’s time to rehumanise human capital management

There is a lot of chatter about artificial intelligence (AI) especially in the highest echelons of companies. It’s being waved about as a magical cure for all managerial ills, with Chat GPT leading the way.

Everyone from classrooms to workplaces is excited about its potential to make everything from learning to productivity faster, simpler and easier – but there’s a massive danger too.

AI is changing the world, but far too many people are relying on it blindly without any reflection on either its effect on their own abilities or the consequences of its implementation.

We are already living with it in our daily lives, from cookies on websites that help build algorithms for retailers to satisfy our every need to programmes that sort and automate our email correspondence. But it can’t do everything.

rehumanise human capital management

Business leaders need to know where the line is

It helps to understand the difference between delegation and abdication. Delegating authority in any business means that you brief a subordinate to do a task which you then validate. Abdication is delegation without the validation process, just blindly accepting it.

AI is perfectly acceptable if it is delegated tasks. There is no reason why AI cannot be used extremely efficiently sorting through masses of data, researching complex issues, but there are also areas where over-reliance on it can be fatal.

 

Why AI can’t replace human nuance

At the moment, AI lacks nuance. Leading, mentoring, managing and developing people is premised on nuance for the simple reason that people are individuals – they are the products of their environments, backgrounds and experiences. Like fingerprints no two people are the same. Predictive analytics and human behaviour do not often correlate because the management of human beings is more an art than an exact science.

Algorithms can tirelessly sift through data, revealing patterns that can identify slumps in productivity, but they don’t explain the root cause. If we do not know what the root cause of a problem is, it is very hard to correctly and fairly address it – especially if our desired outcome is remedial; to get the person back up to their previous level of production. The issue might be a sapiential one; a person struggling to understand a new method of working, or a highly personal issue; like a problem at home, it could be financial or emotional, domestic or depression. Machine learning isn’t geared to establishing this, even less addressing it.

Leadership demands human insight, not just data

The higher up you go, it becomes even more crucial to blend human insight with AI driven reports, especially when it comes to hiring or firing someone. Management might be underpinned by data, but leadership is about the human touch, understanding and empathy, that’s how leaders get their subordinates to go above and beyond to achieve their objectives.

Data analytics are wonderful at plotting the past but cannot yet match human intuition and insight when it comes to scoping the potential of a particular employee or candidate. There’s no nuance in cold hard facts and you don’t need a machine to explain the consequences of that situation.

Rehumanising HR before the machines take over

As the world moves ever deeper into the realms of the internet of things, the need is greater than ever before to claim back human capital management and rehumanise it, because if we don’t, we really will let the machines take over and then what role will there be for any of us?

It’s something that we don’t ever think of. It’s not about being afraid of change, it’s about leaning into change and making sense of the incredible opportunities that do exist if this incredible tool is properly harnessed, not closing our eyes to the very real risks of letting it run unchecked.

We wouldn’t let junior or inexperienced staff operate without supervision, but we don’t apply the same caution to this phenomenon. We should. And we should start now.

Lucia Mabasa expresses an expert opinion in this article

Lucia Mabasa is the Chief Executive Officer of pinpoint one human resources. An executive search firm, established since 1999. The core business of pinpoint one human resources,  is the executive search of C-Suite executives, critical and scarce skills across industries, sectors and functional disciplines in South Africa and across Africa.

Read her previous columns on leadership; avoiding the pitfalls of the boardroom and becoming the best C-suite executive you can be.

Read the article in IOL.