Unit 1

MBA/BBA/B.com/PGDBM/UGC Net

By
Dr. Anand Vyas
HR Analytics,
• HR analytics is the process of collecting and analyzing Human Resource (HR) data
in order to improve an organization’s workforce performance. The process can
also be referred to as talent analytics, people analytics, or even workforce
analytics.
• This method of data analysis takes data that is routinely collected by HR and
correlates it to HR and organizational objectives. Doing so provides measured
evidence of how HR initiatives are contributing to the organization’s goals and
strategies.
• HR analytics provides data-backed insight on what is working well and what is not
so that organizations can make improvements and plan more effectively for the
future.
• Productivity
• Engagement
• Retention
Evolution of HR Analytics
• 1978 :An article titled ‘The measurement imperative’ proposed the idea of measuring the impact
of HR activities with collected data on the bottom line of the business. The proposed activities
included staff retention, staffing, compensation, competency development, etc. The idea marks
the beginning of the data capturing activity in HRM and its application in organizations.

• 1990 : With growing development in the field of and HR measurement integration with more
business dimensions, the predictive and assessment models became a subject of study. But still,
the field of HR analytics remained unknown to many organizations and they couldn’t realize its
potential. The developments leading to the concept of ‘Bench-marking’ to compare the HR
measurement data in various functions and with other companies. Though companies soon
realized that while in theory ‘Bench-marking’ promises to provide strategic business insights, in
real business scenario it fails to do the same and Bench-marking lost its recognition by early 2000.

• 2000 :The emergence of HR accounting and utility analysis was witnessed and this added new
dimension and measurement data to quantify HR. Researchers not only drew the inference from
business firms but from other sources too. One such research is on the metric model adopted by
Billy Beane, the general manager of the USA baseball team to select team members.
The Road ahead
• HR analytics adoption is likely to observe much more rapid growth.
The continuous innovation in the field of AI and analytics will expand
the horizons of HR as a strategic business unit.
• The bottom line is, utilizing HR analytics by tapping into an
organization’s existing people data will inevitably lead to more
productive and better-connected teams. Everyone within an
organization can use data science to find the right people at the right
time and match the right people with opportunities and projects that
move the needle.
HR information systems and Data Sources
• HRIS or Human Resource Information System, is a customized software
solution designed for helping the organizations to automate and manage
their HR, payroll, management and accounting activities. HRIS affects the
performance of the people, processes and key organizational strategies by
automating key HR processes like recruitment, training, manpower
planning, performance appraisal and job analysis & design.

• HR software mechanizes the day to day general and administrative

functions performed by the HR department, enhances overall employee
productivity and performance. HRM applications can be used for updating
and recording employee information, its usage can make the recruitment
process more robust and effective.
Essential Features of HR Software
• Employee Database is the most important feature in any human resource
software. This involves filling in all the employee details and relevant data.
It can be revised or updated as per the requirements.
• A robust HR software must include Salary related details as well and the
software that supports this reduces half of the burden of the HR
professionals. The features might vary but nowadays a lot of software are
adding time tracking and attendance too into this feature.
• The option of self service in the software saves a lot of time of the human
resource personnel in big organizations where most of their time is spent
on several HR tasks. With the help of this feature, the staff members may
have an access to the software for updating their won details, without
interrupting with the work of the HR employees.
• Any HR software should have a module on Performance Management. The
software includes certain parameters and scoring system for evaluating the
performance against certain criterions or parameters and shares the
complete performance report.
HR information systems Data Sources

Recruiting

Demographic
Exit
data
interview.

Talent Learning
development management

Performance
management
HR Metrics and HR Analytics
• HR metrics are measurements used to determine the effectiveness
and efficiency of HR policies.
• Metrics help compare different data points. For example, if turnover
was 5% last year and is now 7.5%, it has increased by 50%. The
former are data points, the latter is the metric.
• Metrics don´t say anything about a cause, they just measure the
difference between numbers.
How to get from metrics to analytics

Start with your Getting the Select the

data metrics right relevant KPIs

Identify areas
Implementation
where analytics
of results
adds value
Intuition versus Analytical thinking
The analytical style of thinking is step-wise and logical. It usually attempts to break a problem or issue into its
constituent parts both to understand and to address or solve it. It is usually very methods-driven, following
thought-through (and sometime research-derived) models and frameworks. Examples of these are the real
options analysis for planning technology investments, and business model canvas, used during new business
development).
Analytics frameworks like LAMP
• People analytics is helping HR shape their strategies in regard to hiring,
training, and employee management to help create a solid, stronger
workforce. But HR is one of the last business departments to start fully
embracing data analytics. Most organizations with departments that use
analytics are using it to increase their customer engagement and grow
their sales numbers, like marketing, customer service, and sales teams.
Accounting and finance departments often use them to help identify
trends that can be applied to business strategy.

• Many businesses achieve this through the LAMP framework: logic,

analytics, measures, and process. These are the four components of a
measurement system that can drive change in an organization and enable
more effectiveness.
HR Scorecard
• Human Resources or HR was viewed as a support function whose
primary role was to take care of payroll, time tracking, and disputes
between the unions and the organizations.

• Indeed, in the manufacturing era, the term used for HR functions was
personnel management and industrial relations wherein the job of
the personnel manager was to ensure that salaries are paid on time,
mediating between the unions and the organizations, and otherwise
being peripheral to the other functions such as production,
operations, sales and marketing, and strategy formulation.
The HR Scorecard has five key elements:
• The first element is what we called Workforce Success. It asks: Has the workforce
accomplished the key strategic objectives for the business?
• The second element is we called Right HR Costs. It asks: Is our total investment in
the workforce (not just the HR function) appropriate (not just minimized)?
• The third element we describe as Right Types of HR Alignment. It asks: Are our HR
practices aligned with the business strategy and differentiated across positions,
where appropriate?
• The fourth element is Right HR Practices. It asks: Have we designed and
implemented world class HR management policies and practices throughout the
business?
• The fifth element is Right HR Professionals. It asks: Do our HR professionals have
the skills they need to design and implement a world-class HR management
system?
Workforce Scorecard
• The Workforce Scorecard is a view of your company's human resource objectives
and performance. The scorecard's foundation is a strategy tree that is comprised
of hierarchical nodes of strategy components. Strategy components are the
elements that make up your strategy, and are the nodes on your strategy tree or
tables.
• The Workforce Scorecard is a component of a larger company-wide scorecard
that facilitates the measurement and communication of human resources
objectives and performance across the enterprise. Following the basic tenets of
scorecard theory, KPIs within the Workforce Scorecard are used to evaluate how
well employees are carrying out the internal initiatives necessary to serve their
customers, how those initiatives are associated with the financial and strategic
goals of the organization, and how efficiently and effectively all employees in the
organization are performing. Used in this manner as an organizational and
communications tool, the Workforce Scorecard supports the shift of the human
resources function from an administrative entity to a key strategic partner.