AN OPERATIONAL
CONCEPTUALIZATION OF HUMAN
RESOURCE ANALYICS:
IMPLICATIONS FOR IN HUMAN
RESOURCE DEVELOPMENT
YELING JIANG & MESUT AKDERE
KMS2154
HUMAN RESOURCE ANALYTICS
INSTRUCTOR: DR. AGATHA LAMENTAN ANAK MUDA 1 May 2022
TABLE OF CONTENTS
CONTENTS
01 INTRODUCTION
02 PURPOSE OF THE ARTICLE
03 HRA DEFINITION
04 IMPACTS OF HRA
05 The Impact of Human Resource Analytics
06 on Individual Employees
07 The Potential Impacts of Human Resource
Analytics on Human Resource Units
The Impact of Human Resource Analytics
on Human Resource Development
The Impact of Human Resource Analytics
on The Organization
THEORIES
HR Strategy: Strategic Fit
Big Data
REFLECTION
CONCLUSION
Introduction
Human resource analytics is an The importance of human resource
important element in the data analysts can be seen from the used-
collection approach used to evaluate on training, organizational
employees in the workplace, to development change and
determine each employee’s performance improvement. With
contribution toward generating proper planning in implementing HR
revenue for the organization, Analytics, we will be able to achieve
reducing overall costs, modifying the main goals of the organization in
risk, and achieving strategic plans. In an orderly manner.
this case, HR Analytics can be listed
into 3 levels namely, descriptive
analysis, predictive analysis, and
prescriptive analysis.
To examine the Purpose of Impact of HRA on
evolution of the the article multiple levels in the
concept of human
resource analytics organization.
(HRA).
Proposed HRA model Operational
aims at the existing framework
demonstrating the
literature and sources generating
presenting an data for HRA
operational To support HRD functions in the organization for the
framework purpose of enhancing human expertise and improving
Proposed an organizations performance.
operational
framework of HRA To discuss its implications on the individual employee,
HR in general and HRD specifically,and the
organization.
HUMAN RESOURCE
ANALYTICS DEFINITION
Contribute to the HRA literature by Descriptive analytics, predictive
describing the growth of HRA-related
definitions and theories, as well as a analytics and prescriptive analytics
few notable figures. By definition,
HRA is about process, as well as HR are the three levels of analytics.
big data, multilayered effects, HR
function and the organization. Descriptive analytics-type of
According to Jac Fitz-enz, HR analytics that describes trends in
practices began to shift since
management had a difficult time both historical and present data.
measuring the number previously. He
stated that HR output may be Predictive analytics-technique for
quantified in dollars, which would
have an impact on the company's analyzing and forecasting future
bottom line. Aside from that, he
described HRA as a logical analytical trends using a large dataset.
process that involves gathering data
from disparate sources for Prescriptive analytics-offers
reasoning, debate or computation.
decision-making with alternatives
and the repercussions of each
selection.
IMPACTS OF HUMAN
RESOURCE ANALYTICS
Employees are the first stakeholders HRA eventually leverages business people-
touched by the HR big data as objects related choices as well as the operations
of HRA & their emotions, favorable or strategy by improving employee &
negative, should not be overlooked, organizational performance & cooperating
HRA modifies the practices of HR with other organizational units.
units by analyzing HR big data to fix
flaws in present HR processes or
make adjustments to improve
performance.
Impacts of Human
Resource Analytics
The Impact of Human Resource Analytics on The Potential Impacts of Human Resource
Individual Employees
Analytics on Human Resource Units
Improves employees job fit
Advancement of technology improves Recruitment & Retention
ability to collect data
Performance Appraisal &
The Impact of Human Resource
Analytics on Human Resource Performance Pay
Development
The Impact of Human Resource Analytics
Popularising social networks on The Organization.
Promote informal learning.
Organization's achievement results
Influences organizational strategy
Impacts of human resource analytics
Employees are the first stakeholders touched present HR processess or make adjustments to
by the HR big data as objects of HRA & their improve performance. HRA eventually
emotions, favorable or negative, should not be leverages business people-related choices as
overlooked, HRA modifies the practices of HR well as the operations strategy by improving
units by analysing HR big data to fix flaws in employee & organisational performance &
cooperating with other organisational units.
Human Resource
Analytics Process
One difficult aspects of comprehending HRA is that the many forms &
techniques utilised in HR processes, including as machine learning, people
analytics & organizational network analysis are all dependent on scenarios &
difficulties. Although the HRA models or technologies differ, they all follow the
same pattern of input-process-output, particularly the HRA operational
framework.
HR-related big data, which incorporates data acquired from a variety of internal and
external sources, is one of the precursors of HRA. HRA able to give individual employees,
HR departments & the company with both benefits & issues through the HRIS process.
HRA need support from all levels of the company to be successful. Employers must assist
workers in developing in awareness of & trust in HR big data & measures to protect
employee privacy & data must be coordinated to minimise future breaches. All
businesses, must keep a close eye on the whole data collecting & management process,
ensuring that HRA procedures & activities are transparent & follow all applicable rules &
regulations.
The finance department helps HRA with the value generated by people-related choices
& an organization's HRIS requires IT departments to update & maintain it.
The Impact of Human Resource Analytics on
Individual Employee.
HRA, tackles employee performance concerns, improves
employees skills, motivation, job-fit, career-fit & longevity on
an individual basis. HRA offers workers a customized job
assignment solution that improves employees job fit based on
their skills & interests. Analytical methods help firms enhance
employee retention by choosing candidates whose patterns
are more aligned with the organization's vision, purpose, goals
& culture. Employees rights that are regulated include the
right to request that their personal data be erased & to
obtain personal data about them. For example, HR department
should handle employee data only as a business requirement
& the nature of consent should be communicated in clear &
open manner. Organization must give workers a complete
information on how their personal data was handled, as well
as the right to access & deletion of personal information
under the law.
The Potential Impacts The Potential Impacts of Human Resource Analytics
of Human Resource on Human Resource Units.
Analytics on Human Resource HRA covers all essential HR function i.e., recruitment & hiring,
Units performance appraisal & pay, & employee retention.
Descriptive & predicted analytics used in both recruitment &
Recruitment & Retention retention & the ROI of employing HRA is predicted from
medium to high. This could be a major barrier for the
Performance Appraisal & company & HR should play a key role in identifying person
Performance Pay organization fit i.e., United Health employs predictive analytics
to manage its retention issues. As a multinational insurance
company, its workers diverse origins can make recruitment
right role, the company hopes to solve its turnover problem.
Next, is performance appraisal & performance pay. The
application of a three-way model of performance pay, HRA
and information technology has been studied. It makes use of
human capital management (HCM) software to deliver
information to HRA for performance appraisal & pay. A
crucial HR role is performance appraisal.
The Potential Impacts of Human
Resource Analytics on Human Resource
Development
The application of 3 way model of
performance pay, HRA & information
technology has been studied. Data analytics
software was employed by 2 European
companies in the manufacturing & education
industries. Companies can use HRA
framework to uncover trends &
characteristics in each employee's
performance.
The Potential Impacts of Human
Resource Analytics on The
Organization.
HR measures i.e., ROI, economic value,
productivity & benefits can be used to
assess the relationship between human
capital investment & financial returns.
Traditional HR has been criticized for failing
to contribute to company strategy, i.e., by
failing to have a HRA-equipped companies
have a competitive edge over non-HRA
equipped companies.
Theories
1) HR Strategy: 2) Human Resource
Strategic Fit Big data
Baird and Meshoulam (1988) emphasised the HR big data allows a company to gather real
necessity of matching HR policies with the time insights through analytic processes. The
organization 's life cycle and business term "diversity of data" in HR refers to the
challenges. They say that having a vertical source and type of information. There is no
and horizontal fit means that the HR fixed size or type of data, no required forms or
department collaborates with other fixed dataset and the volumes of data continue
business areas to accomplish organisational to increase.
goals. When HR and other functions are
vertically aligned, they may interact cross- The properties of big data can be
functionally. generated into five “V” s: variety, volume,
veracity, velocity and value. Behavioral
Horizontal fit refers to the premise that analytics that concentrate on HR big data
the impacts of individual HR practices on rather than relying on a single data
effectiveness are not cumulative, and that source.
focusing just on individual HR practices Data from the personnel level, such as
might lead to false conclusions. current and past employees from the
HR staffing strategy, pay strategy, and the department level, business, hide data value
larger HR strategy spectrum have all is generated.
been built using vertical fit models in HR.
Outsourcing HR might result in disappointment
HR and IT combine to improve organization if the outside provider is unable to provide the
efficiency, according to Aral et al., (2012), HRA desired outcomes. HRA implementation
and IT collaborate to improve organizational necessitates collaboration across many
efficiency. By studying crucial variables, organizational units. Employees may be
SYSCO boosted their employee retention rate empowered with the incentive to implement
from 65 to 85%. HRA financial performance and learn new knowledge by creating an open
may be used to assess the relationship and inviting atmosphere. For example, IT is
between human capital investment and responsible for technical assistance, finance is
financial performance. responsible for ROI audits and HR is
responsible for HRA.
REFLECTION According to our understanding
regarding this topic, Human
Resources Analytics consists of
people analytics, workforce analytics
or talent analytics. Its process
impacted the employees, HR Units, HR
Development and the whole
organization. Human Resources
Analytics is about how we measure,
collect data and organize the
information of some problems in an
organization. HR Analytics consists of
people analytics, workforce analytics
or talent analytics which involves
collecting, analyzing and reporting HR
data.
HR Analytics is crucial in HR Analytics helps the
making decisions for a better organization measure the
performance of an achievement of HR planning and
organizatio.n, as it provides processes through employees
insight into the most efficient performance and efficiency.
methods in managing The data helps the HR
employees. HR Analytics professional to identify the
enables the organization to use suitable employee that fit with
the talent of its employees that the organization's culture and a
could lead to a better decision specific role. Employee
and at the same time improves retention is able to be improved
the organization's achievement by selecting the employee
result. which is suitable and according
to their data.
CONCLUSION
In conclusion, there are few impact of human resource analysis e.g., the impact of
human resource analytics on individual employees, the potential impacts of human
resource analytics on human resource units, the impact of human resource
analytics on human resource development, and the impact of human resource
analytics on the organization. Aside from that we found that there are numerous
HRA activities are carried out in order to meet the organization needs of improving
financial performance and organizational outcomes. Employee's reaction to HRA
should not be overlooked and employee involvement should be prioritized, according
to HRAs. As a result, HR analysts should have strategic planning experience in order
to successfully incorporate HRA forecasts into HR planning, as well as be skilled
storytellers in order to properly convey data analytics results to other stakeholders
throughout the strategic decision-making procedure.
"If You Are Not Willing To Learn,
No One Can Help You.
If You Are Determined To Learn No
One Can Stop You"
-Zig Ziglar
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