This study aims to understand how organizations manage human resources in the digital and artificial intelligence era by examining four key dimensions: employee upskilling, reskilling, digital-based performance management, and ethical AI use. The study employs a qualitative approach with a case study design to explore organizational practices and employee experiences in the context of digital transformation. Data were collected through in-depth interviews with managers and employees, participant observation of training activities and digital performance management practices, and relevant documentation. The findings indicate that upskilling and reskilling support employee readiness to adapt to changing job roles and technological demands, while digital-based performance management enhances monitoring, transparency, and evaluation efficiency. However, the findings also show that digital performance systems may overlook qualitative employee contributions, highlighting the continued importance of human interaction. Furthermore, AI use in HR management requires clear ethical guidelines, transparency, accountability, and human oversight to maintain fairness and employee trust. The study implies that effective HR transformation requires an adaptive, integrated, and human-centered approach that balances technological innovation with employee development, ethical governance, performance effectiveness, and well-being.
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