Question

What is the importance of analyzing your results before making new decisions in CAPSTONE. Applying the department in decision making on the Human Resources.

Answer 1

Ans :

Developments in Human Resources Management (HRM) are fast being integrated with corresponding changes in data and information processing, which are restructuring our environments. The domain of human resource analytics, which can be understood as a data and analytical thinking-centered approach to Human Resources Management, is fast becoming an indispensable part of organizational setups. The present study explores the existing literature in the field of HR analytics and their implications for predictive decision-making in organizations. This will also include critically reviewing the literature on the integration of HR analytics in organizational setups through the introduction of relevant IT infrastructure and provisions.

People are organizations unsurpassed assets, and effective way of gaining competitive advantage in a present volatile market environment and it is a big challenge for organizations to manage employees with diversified competencies and mapping their outputs in line with the organizational strategy. This requires creating, analyzing and storing vast amount of data to support decision making. Management of human resources requires tools to enable managers to get insights into the patterns that emerge from various HR functions, which will help the organizations in filtering the star performers from the pool of huge employee database. The solution is offered by the implementation of analytics for the management of employee data scientifically and rationally and relating with the organizational outcomes. “HR Analytics” includes the use of statistical techniques, research design, and algorithms to evaluate employee data and translating results into evocative reports (Levenson 2005). The HR Analytics applies statistical models to get insights into employee data, patterns revealed by the data makes it possible to predict employee behavioral patterns like attrition rates, training costs, and employee contribution. This is also called as predictive analysis.

A typical HR Analytics System collects employee data from HRIS (Human Resources Information System), business performance records, mobile applications and social media merges into a Data Warehouse, applies big data, statistical analysis and data mining techniques to provide understanding of hidden data patterns, relations, probabilities and forecasting. A Data Warehousing System deals with the data collection, analysis, and transformation and storing data on various databases.  

HR analytics is a relatively novel intervention in the larger domain of Human Resource Management. It is also often referred to as people analytics or talent analytics or workforce analytics ("People Analytics," n.d.). HR analytics can be understood as being more credible because it provides statistically valid data and evidence that can be used in the process of creating new strategies and during the implementation of existing HR strategies and other measures. The possibilities for HRM offered by analytics have been realized by employers and organizations, but there remains immense room for growth in the area and the study of the relevance of analytics within the various categories that fall under Human Resource Management.

The effective HR Analytics will help the HR managers in performing HR functions such as forecasting the demand and supply of people, identifying suitable employments tests to suit applicant profiles, assessing training needs of employees, implementing pay for performance, and maintaining effective employee information to decide on rewards and managing employee discipline. Overall it helps the HR managers to make decisions based on data about recruitment, retention, training, rewards, career planning and organizational effectiveness and efficiency.

Benefits of HR Analytics

More than often most of the data that is required for such an analysis is already there within the organization. Age, academic history, demographics, prior experience, trainings undertaken, performance ratings and many such data points are already available with the HR department. This internal data is combined with external data sources to get a complete picture. HR Analytics helps in putting all this data together, marry it with relevant external data and help HR Managers ask relevant questions so as to take better decisions.

Some questions which HR Analytics helps find answers to:

• Figure out the reason behind a high turnover in a certain team
• Why is the top talent quitting at a higher rate than others?
• How to improve productivity of a team?
• Skill-gaps in the organization and how to fill those
• The effectiveness of the employee orientation (or similar) program
• Predict the right people to hire for a specific role
• Predict and manage attrition rate
• What drives employees across gender, age, country, etc.?
• Does the performance rating system actually reflect employee performance?
• How to attract a more diverse workforce?