Deriving personalized HRM practices using employee-AI collaboration: A shared mental model approach

This study aims to investigate the relationship between shared mental model and personalized HRM practices. The study further investigates the mediating effect of employee-AI between shared mental model and personalized HRM practices. Drawing on industrial and organizational psychology, this study explains cognitive alignment among employees. This improves collaboration with AI systems and supports personalized HRM practices. Data collected from 173 managers working in national and multinational fast-moving consumer goods (FMCG) companies operating in Pakistan. The structural equation modeling technique via Smart PLS-4.1 was employed for the path analyses. The results reveal that the shared mental model is positively associated with personalized HRM practices, and the relationship is mediated by employee-AI collaboration. Our study highlights the significance of having employee competencies in AI systems, through which employees achieve personalized HRM practices. To the best of our knowledge, this is the first study to examine the relationship between shared mental model and personalized HRM practices. The authors integrate a shared mental model with personalized HRM practices through AI collaboration, thereby enriching the HRM and AI literature.