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HR ANALYTICS: A MODERN TOOL IN HR FOR PREDICTIVE DECISION MAKING

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DOI: 10.34218/JOM.6.3.2019.007

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Journal of Management (JOM)
Volume 6, Issue 3, May - June 2019, pp. 51-63, Article ID: JOM_06_03_007
Available online at http://www.iaeme.com/JOM/issues.asp?JType=JOM&VType=6&IType=3
Journal Impact Factor (2019): 5.3165 (Calculated by GISI) www.jifactor.com
ISSN Print: 2347-3940 and ISSN Online: 2347-3959
© IAEME Publication

HR ANALYTICS: A MODERN TOOL IN HR FOR

PREDICTIVE DECISION MAKING
Dr. Abdul Quddus Mohammed
Assistant Professor in Business (HR), Higher Colleges of Technology,
Abu Dhabi, United Arab Emirates

ABSTRACT
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-centred approach to Human Resources
Management, is fast becoming an indispensable part of organisational setups. The
present study explores the existing literature in the field of HR analytics and their
implications for predictive decision-making in organisations. This will also include
critically reviewing the literature on the integration of HR analytics in organisational
setups through the introduction of relevant IT infrastructure and provisions.
Keyword: HR analytics, predictive, decision-making, predictive modelling.
Cite this Article: Dr. Abdul Quddus Mohammed, HR Analytics: A Modern Tool in HR
for Predictive Decision Making, Journal of Management, 6(3), 2019, pp. 51-63.
http://www.iaeme.com/jom/issues.asp?JType=JOM&VType=6&IType=3

1. INTRODUCTION
In a competitive market scenario, it is imperative that an employee’s potentials be harnessed to
the best for organisational success. In such an environment, human resources remain one of the
primary distinguishing factors for an organisation that can be used for competitive growth in
order to create necessary organisational value (Bharti, 2017). The optimum utilisation of the
human resources capital that an organisation possesses is an on-going process; consistent efforts
in the direction will ensure that the human resources of an organisation would remain an asset
and not a liability. Human Resource Management must be undertaken taking into consideration
the needs of the organisation as a whole; it can be understood as a domain of study that is
oriented towards exploring those practices and approaches, which can be implemented in the
context of employees to achieve organisational goals (Armstrong and Taylor, 2014). However,
for a Human Resources Management to be appropriately effective and help in making
alterations and introductions that yield positive results or have profitable implications, it should
be oriented towards gaining a deeper insight into behavioural particularities and characteristics
of its employees. Stemming from the domain of Personnel Management, HRM is oriented
towards identifying tools and measures, and relies on the basic principle that the employers and
employees can work together and realise shared goals within the operative space of hierarchies

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 Dr. Abdul Quddus Mohammed

and structured systems (Marchington, Wilkinson, Donnelly and Kynighou, 2016). In order to
realise these goals, HRM includes a variety of established strategies and practices that have
been proven to be effective and also the creation of new ones particular to organisational
context.
Managerial tasks and decision-making on critical issues form an integral part of the work,
which falls under the scope of the HRM of an organisation. Decision-making has been
identified as one of the most critical organisational processes including employee behaviour,
work performance, levels of motivation and the amount of stress levied on employees (Griffin
and Moorland, 2011). It is critical that the nature of HRM practices implemented would be
aligned and synchronised with larger expectations and guidelines for employee behaviour and
competitive goals. Keeping in perspective, the desired role behaviour of an employee, that is,
the requisite skills, knowledge dimensions and abilities, various competitive business strategies
can be closely matched with organisational conditions in order to see development in critical
areas, such as decision-making (Pereira, 2013).
Human resource analytics is a relatively novel intervention in the larger domain of HRM,
and it refers to the use of statistical tools, measures and procedures, which can be used in
employing and masking the most effectual decisions such as HRM strategies and practices. It
is often referred 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
during the implementation of existing HR strategies and other measures. The possibilities for
HRM offered by analytics have been realized by employers and organisations, but there remains
an immense room for growth in the area and the study of the relevance of analytics within the
various categories that fall under HRM.
The present study is directed towards exploring the existing literature about the relationship
between Human Resource analytics and the role it can play in improving the existing range of
managerial and HR-related tasks. The exploration of this literature will be instrumental in
providing insight into to what extent people analytics is relevant in the domain of decision-
making and the ways in which it can be adopted by organisations to expect good returns on
investments made in the process. This will include critical examination of the steps in detail
taken for the integration of HR analytics in the organisational structure; the processes employed,
and the statistical tools used for data storing and the approach adopted while putting analytics
to use for industrious decision-making. Hence, HR analytics can be understood as offering
significant prospects and has a huge potential of improving the HR and Managerial decisions-
making process that will be explored during the present study.

2. RESEARCH AIMS AND OBJECTIVES

The aim of the following research is to undertake an exploration of existing literature with the
aim of understanding the relationship between human resource and analytics and understand
the role it plays in the improvement of the existing range of managerial and HR related research.
The present study is ealizati around the ealization of the following objectives-
1. To investigate and gain insight into the future of HR analytics if integrated into the
company to assist managers in predictive decision-making based on statistical evidences
and relevant HR analytical data and literature.
2. To examine the existing literature on the integration of HR analytics within
organisations and evaluate the existing studies qualitatively and discuss the research
gaps (if any).
3. To examine the IT infrastructure and technological interventions, including those that
affect the way data is mined stored and made in terms of the effective implementation

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 HR Analytics: A Modern Tool in HR for Predictive Decision Making

of HR analytics and the need for them in order to be efficient in terms of data storing in
order to be relevant for HR analytics

3. LITERATURE REVIEW
3.1. Integration of HR Analytics within a company

3.1.1. The Concept of HR Analytics

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, analysing 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 behavioural 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

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 Dr. Abdul Quddus Mohammed

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.

3.1.2. Types of HR Analytics:

Analytics can be categorised as descriptive, predictive and optimization analytics (Watson
2010, Narula 2015). Descriptive Analytics is a first level of analysis, includes understanding
the historical data, behavior and outcomes, it only describes the relationship (Fitz-enz 2009). It
involves the use of data visualization, adhoc reports, drilling-down, dashboards / score cards,
SQL Queries. Turnover rates, Cost per hire and Absence Rates can be found out using
descroptive analysis. The second level of analysis is Predictive Anaytics includes forecasting
the futre behavior and outcomes based on the past data. It involves the use of Data Mining
(correlation between data), decision trees, pattern recognition, forecasting, root-cause-analysis,
and predictive modeling (what will happen next). Predictive modeling will help the HR
managers in forecasting attrition rates, proabibility of employee success on job based on
recruitment / selection methods used. The third level of analysis is Optimization Analytics,
includes not only achieving the best outcomes by using limited resources. It involves using
linear programming, simulations, creating mathematical modelling and implementing are used
to find the best alternative training investment to achieve organizational effectiveness (Narula,
2015).

3.1.3. Why HR Analytics

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 HR Analytics: A Modern Tool in HR for Predictive Decision Making

3.1.4. HR Analytical Tools

SAP, IBM, Oracle, Microsoft are vendors in Business Intelligence. BI software’s have HR
modules with BI and data analytics capabilities (Kapoor & Sherif 2012). R-Studio is a data
analysis and visualization software tool which can be applied for very large data sets, Python is
a preferred programming language of all data scientists for statistical data analysis and
visualization. Microsoft Excel is a traditionally a great data analysis tool to collect, analyse and
transform data using formulas, pivot tables, scenario building and graph tools. Microsoft Power
Business Intelligence software has power to extract data from various sources and makes easy
for us to analyse, aggregate and visualization of data, the best part of this software is it (Erik
Van Vulpen, n.d),
Mondore, Douthitt and Carson (2011) in their study on HR analytics provided a Six-step
roadmap on how to include HR analytics so as to ensure that it aligns with HR strategies and
desired organisational outcomes. The steps involved and described in the research include
identifying the most significant outcomes; creating a cross-functional data plan; implementing
adequate measures to assess critical outcomes; drafting and executing the plan; measuring,
modifying it post-implementation and making other modifications (p. 23-24). The study also
looked at how HR analytics can be used in order to identify and secure talent for an enterprise
hence, making a plan for succession and talent for an organisation. The suggested plan for HR
analytics outlined in the study is based on the implementation in certain organisations; hence it
can be understood as providing a detailed insight through minor suggestions, such as making
HR analytics available to individuals in leadership roles in an organisation.
Rasmussen and Ulrich’s (2015) study examines the nature of the claim that HR analytics is
said to bring additional value to managerial and HR decision-making by providing statistical-
backed and verified data. The study recommends that in order to prevent HR analytics from
becoming yet another ‘management fad’, it should work towards altering the conventional
approach adopted by HR and related endeavours in order to ensure that it is effective in terms
of providing concrete and material outcomes. The study recommended that instead of
employing the traditional HR-oriented “inside-out” approach, there is a need for shift towards
the “outside-in” approach, which is implemented with an emphasis on concrete action. This
suggestion for an altered approach could be implemented through the use of relevant
technological interventions. Ulrich and Rasmussen’s study presents two case studies on the
implementation of HR analytics in business analytics and studies the positive implications it
has in terms of optimising performance and managing the development of organisational talent.
The study posits HR analytics as a judicious tool in order to enhance the real-world impact of
HR in achieving business goals.
Levenson, in his 2011 study, advances the importance of analytics to HR practice in which
it provides a comparative analysis of the cost benefit and impact analysis and the ROI. Building
on his 2005 study, Levenson (2011) postulates that the use of analytics and metrics provide
great potential for the improvement of the quality of decision making in human capital and HR
issues in the firms. The study advances that the analytics in the HR function have been observed
as a specialist skill preserved from the analytic specialist. Levenson’s study points out that the
metrics are important in the increasing the levels of insightful, analytically-based decision
making in HR. Moreover, the study postulates that the metrics and analytics aids in much
needed deep analysis in which he discusses the models such as labour markets, and
organizational design, which all have elements of diagnostics and apply logic exercises. The
study, thereby, suggests that the time, energy and resources of the HR practitioner should be on
the application of good analytics broadly, which improve the diagnosis of the HR issues and
provide a better orientation for the development of business models and actionable propositions.

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 Dr. Abdul Quddus Mohammed

Additionally, another major suggestion by the study included the development of an HR

analytics COE and ensuring a foundation based on HR analytics across the range of
organisational tasks. Rasmussen and Ulrich’s (2015) study examines the nature of the claim
that HR analytics is said to bring additional value to managerial and HR decision-making by
providing statistical backed and verified data. The study recommends that to prevent HR
analytics from becoming yet another ‘management fad', it should work towards altering the
conventional approach adopted by HR and related endeavours to ensure that it is effective
concerning providing concrete and material outcomes. The study recommended that the instead
of employing the traditional HR oriented "inside-out" approach, there is a need for shift towards
the "outside-in" approach that is implemented with an emphasis on concrete action. This
suggestion for an altered approach could be implemented using relevant technological
interventions. Ulrich and Rasmussen's study presents two case studies on the implementation
of HR analytics in business analytics and studies the positive implications this has regarding
optimizing performance and in managing the development of organisational talent. The study
posits HR analytics as a judicious tool to enhance the real-world impact of HR regarding
achieving business goals.
It is also important to consider how HR analytics to be used in line with the HR strategies
and desired organizational outcomes, this was demonstrated by Mondore, Douthitt and Carson
(2011) in their study on HR analytics provided a six-step roadmap on how to include HR
analytics to ensure that it aligns with HR strategies and the desired organisational outcomes.
The steps involved described in the research include identifying the most significant outcomes;
creating a cross-functional data plan; implementing adequate measures to assess critical
outcomes; drafting and executing the plan; measuring, modifying it post-implementation and
making other modifications. The study also looked at how HR analytics can be used to identify
and secure talent for the enterprise hence planning for succession and talent planning for the
organization. The suggested plan for HR analytics outlined in the study is based on the
implementation in certain organizations hence can be understood as providing detailed insight
through minor suggestions such as making HR analytics available to individuals in leadership
roles in the organization.

3.2. IT infrastructure and centralised data storing

The development of HR analytical systems has been accelerated by technology, which is rapidly
consolidating the analytics landscape. This section will review literature pertaining to the use
of technology in developing the scope of HR analytics in decision-making.
Fairhurst's study (2014) defined the nature of the steps that need to be taken regarding
incorporating a data-driven architecture into HR analytics, to assimilate analytics with HRM.
The study narrowed down five steps involved it the process, which include the conversion of
business concerns into data interpretation questions, i.e. ones that can be answered through data.
The other steps involved in the process include making necessary provisions for systemizing
and storing the data acquired; the interpretation of data through relevant statistical tools and
measures; further analysis of the data using statistics, machine learning and neural networking;
and the presentation of the outcomes or findings to the concerned enterprise or organization in
a coherent format. Angrave, Charlwood, Kirkpatrick, Lawrence and Stuart’s (2016) study
looked at the veracity of the transformative claims touted by HR analytics, which is fast
becoming one of the imperatives for reworking organisational outcomes. The arguments
presented by the study is a cautionary one, which seeks to look at the implementation of
analytical thinking in HR analytics. In the domain of big data studies, Angrave et al. have
reviewed the need for analytics related measures to be rooted in and based on metrics that
simultaneously rely on advanced statistical analysis and on experiments carried out. The

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 HR Analytics: A Modern Tool in HR for Predictive Decision Making

recommendation for improving the existing model is based on the inclusion of HR related
variables in the creation of analytics models but at the same time the study cautions against the
unchecked inclusion of solutions provided by analytics software and tools. King’s (2016) study
examined the role of data analytics in HRM through a case study and a critical review.
According to the study the developments in the field have also fueled a degree of uncertainty
about the proficiency of HR professionals in employing the data or information accessible to
them in order to generate productive results. The study reviewed literature that is both for and
looks at the drawbacks of human resource analytics and argued for the involvement of academic
discourse in the inclusion of analytics and related practices. The use of case studies in the
research provides practical advice through the study, with the emphasis on a more applied and
action-oriented approach. Hence the study identified certain targets for analytics, recommended
practices such as outsourcing, and ensuring that the available data was trustworthy and within
reach and the development of models to put to use the available data.
Jasmit Kaur and Alexis A. Fink (2017) based 22 interviews at 16 companies found that most
of the companies (94%) are using R Studio is used for the data analysis and visualization,
followed by Tableau (83%) which is a popular visualization and dashboard creation tool ,some
companies are also using Python for data analysis, data cleaning, data management and machine
learning SPSS and Excel are also used by some companies as traditional and trust worthy tools
for business analytics professionals. Some new technology tools are permitting Artificial
Intelligence are IBM’s Watson Talent, Intel’s Saffron, HireVue’s video analytics platform. For
surveys Qualtrics, SurveyGizmo, Sirota are used and for business intelligence and analytics
Cognos Visier are used. These list of new technology tools confirms that the HR analytics is
still at experimentation stage and there is long way to go in the future.

3.3. Predictive Decision Making

Predictive analytics is applied to make forecasts about unknown events using statistical data
analysis, modelling, machine learning, data mining and AI (Artificial Intelligence) to analyse
historical and current data to predict future data. Predictive analysis in HR is rapidly growing
and demanded area. HR predictive analytics is being used by HR managers in organizations to
predict human behaviour and optimize performances and produce a better return on investment
for organizations through decision making based on predictive analysis tools. This section will
review relevant literature to understand the process of HR predictive analytics.
Rich, Lepine and Crawford’s (2010) study theorised that employee engagement is a more
significant marker affecting employee performance as compared with other factors that reflect
relatively smaller aspects of an employee’s personality. Their study was based on the evaluation
of 245 firefighters with their supervisors in order to reach the desired conclusions about
engagement. According to the study, engagement mediates relationships between critical
parameters like the performance at tasks and organisational behaviour exhibited by employees.
Other parameters included mediators include involvement, satisfaction with the nature of work,
the innate dedication of the employee towards the work were found to have significantly less
effects when compared to the parameter of engagement.
Puhakainen and Siponen’s (2010) study evaluated the need for employee training with
respect to complying with the information system security policies of an organisation.
According to the study, establishing the significance of the need for such training is in the
interest of the organisation. The study suggested the implementation of two models as training
programs in IS security policies, the primary program included training through an action
research-based plan. The action research-based plan drew from theoretical contributions and
examined their practical feasibility to creating awareness about IS security policies.

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 Dr. Abdul Quddus Mohammed

Fitz-enz and Mattox’s (2014) study comprehensively investigated the role of predictive
analytics in the study looked at the three levels that analytics is divided in, namely predictive,
descriptive and prescriptive analysis and the various techniques that fall under them. The study
looked at the complete range of steps involved in the process beginning from creating an
analytic value chain; to the creation of analytic models, the varied processes involved in turning
data into information; along with certain examples of predictive statistics and predictive
analytics in action. The research study also explicitly cites examples from analytics that
demonstrate the use of predictive modeling. This involves the setting up of models that
demonstrate that how raw data can be used to gain insight and to generate inferences for
instance, exit interviews carried out by employers can be an important measure used to
understand the reasons behind why employees choose to leave and hence help the organization
in talent retention.
Laszlo Bock (2015) the Senior Vice President of HR at Google writes in his book Work
Rules, argues that Google uses statistics in people management the interview questions are fully
automated, perfectly tweaked based on the profile of the candidates to find the best suitable
candidates. Google also estimates the probability of employees resigning from the company by
applying HR predictive analysis that the employees who do not get promotion in first four years
are likely to leave the company. Kluemper, Rosen & Mossholder (2012) discovered the
possibility to predict the employee job performance and behavior based o IQ, personality tests,
structured interviews and there is correlation between these tests and the Facebook profile of
the candidate, which could be used as an supplementary instrument of employee selection after
considering legal and ethical issues. Best Buy applies HR analytics in predicting the store
performance based on employee engagement practices for every quarter, it predicted that a 0.1
percent increase in employee engagement resulted in increase of store income to $100,000 (Erik
Van Vulpen n.d). In 2011 Hewlett-Packard (HP) applied HR data analytics to predict the
number of employee turnover that they called “Flight Risk Score”. They found that higher pay
and the promotions and better performance ratings are negatively correlated, someone who
received promotion but did not receive pay raise is likely to leave job. HP created a dashboard
for all its HR managers with important matrices for all employee information. Companies can
save millions of dollars by applying predictive HR analysis by predicting how the employees
behave but also their contribution in organizational performance.
Ballinger, Cross and Holtom in their 2016 study examined the influence of the network
structure as a predictor for voluntary turnover. The research focused on the employee’s social
relationships as a resource that influences the rate of labour capital in the firm. according to the
study, the network reputation which serves as an access to well-connected people is an
influential factor in determining the turnover within the organization. Ballinger, Cross and
Holtom (2016) observe that the brokerage serves as a moderating factor in which it serves as a
gain in terms of the advancement, the generation of ideas and the performance. The primary
inference to the employee turnover that can be drawn from the study is that that employees who
had a more established social network have more brokerage and reputation resources and are
more likely to leave the firms. Mishra, Lama and Pal’s (2016) study examined the role of the
domain of predictive analytics within HR analytics, according to the study HR predictive
analytics has wide-ranging effects regarding the all areas related to human resource
management through the identification and proposal of certain metrics that can be used for
predictive modelling. It helps organizations in reducing implementation costs due to HR related
interventions, and to optimize business performance and see higher levels of employee
involvement. The study helps in explaining the connection between factors like low talent
retention and high rate of attrition. According to the study HR predictive analytics “is rapidly
changing and growing technology which has potential to achieve 100% accuracy in decision
making for HR. Till 2020,” (p. 34).

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 HR Analytics: A Modern Tool in HR for Predictive Decision Making

Reddy and Lakshmikeerthi’s (2017) in their study found that HR analytics poses a way of
being an important tool that can help assimilate the data gathered to describe, analyze, predict
and optimize the potential of an organization's employees. The study also narrowed down
certain factors like institutional mechanisms, competitive mechanisms, configuration and
organization architecture, that are instrumental in effecting HR analytics.
Jasmit Kaur and Alexis A. Fink (2017) based 22 interviews at 16 companies found the
companies are using HR analytics for building predictive models for hiring, retention, attrition
and designing employee benefits based on employee demographics and attrition patterns.
Companies are using HR analytics for employee engagement through satisfaction surveys,
building staffing plans based on data collected from the HR departmental vacancy positions,
talent movement (transfers, promotions) and labour market data, the employee feedback on
good or worst management practices are collected to enable managers understand their styles
and needs for improvement. The measurement of effectiveness of training programs is also an
important application of HR analytics.

3.4. Data Governance issues in HR Analytics

Data Governance is use of formal procedures to make sure that the quality data is collected and
to be used ethical and legal way. The area of HR Analytics has potential of issues related to
ethics and legality as it is using modern technologies to source, analyse large volumes of data
to facilitate managerial decision making. Toyama, K. (2015) recommended that first sin of
Artificial Intelligence is to allow computer systems (machines) to make ethically sensitive
decisions. And recommended that the HR analytics can be input to human decision makers.
Predictive models can be useful to alert decisionmakers but not to make or arrive at the
decisions. As the decisions should not violate important labour laws such as discrimination,
disabilities. There is a danger of employee confidentiality, trust and privacy because of HR data
analytics and using clean data for decision making.

4. DISCUSSION
In the literature reviewed on the integration of HR analytics within the organisation, the
strategic plan outlined by Mondore, Douthitt and Carson’s study does not come with sufficient
reviews or case studies that could provide sufficient evidence of its real-world applicability. As
such the model posited by the study cannot be assumed to be universally applicable and must
be contextualised according to a particular organisation and its specifications. Rasmussen and
Ulrich’s (2015) study is based on the notion of revolutionising the approach adopted by HR
organisations in terms of aligning analytics with the business goals of the study, but hasn’t seen
adequate implementation in order to make evident the extent to which HR analytics reflected
returns in terms of helping in attaining organisational goals. Levenson’s study looked at the
various tools and statistical procedures that fall in the domain of HR analytics in order to
surmise their particular utility for HR analytics. The study also emphasised the development of
business models and concrete strategies instead of the regular implementation and deployment
of resources for data mining. However, the research doesn’t identify particular time frames and
resources needed for the development of recommended HR analytics COE and for drafting
models required for the implementation of HR analytics.
In the literature reviewed under the section entitled IT Infrastructure and Centralised Data
Storing, Angrave et al. (2016) provides statistically backed evidence and data gathered from
analytical statistics and the inclusion of HR-related variables in the information. While the study
endorses the formulation of an analytical model that is tried and tested, and such a practicable
approach suggested by the study is beyond the scope of a theoretical analysis and can only be
undertaken in an organisational setup. Additionally, the study also points out that data analytics

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 Dr. Abdul Quddus Mohammed

results and recommendations may not be without error, and hence cannot be relied on blindly.
A week’s study claims that the inclusion of online and web-based HRIS will simplify the
process of acquiring HR variable dependent data, making it primarily machine-dependent and
reduce the need for human resources; however, at this stage, the feasibility of the HRIS systems
in terms of their cost and other factors related to their inclusion can only be approximated. Other
impediments to the introduction of HRIS may crop up, such as expensive technical components,
and the need for personnel for monitoring them. The optimistic claims made by the study do
not take this into consideration. Fairhurst’s (2014) study presents a model for including a data-
driven architecture into an organisational setup, so as to manage the data acquired for HR
analytics. Yet, the model presented by the study remains a cursory formulation and does not
provide an in-depth explanation of each of these steps. As such the practical feasibility of the
model remains limited and the task of incorporating it in an organisational framework would
require considerable effort.
The claims of Mishra, Lama and Pal’s study about Predictive Decision-Making need to be
supplemented with adequate case studies done in organisations, in order to legitimise those
postulations relating to the cost sustainability prospects offered by HR analytics. Additionally,
the estimates for future growth in the field posited by the study remain at face value, and the
feasibility of these claims needs to be studied in the context of real-world enterprises. Fitz-enz
and Mattox’s study, on the other hand, provides a more comprehensive roadmap for including
analytics into HRM with detailed insight into the nature of the shift in approach required in
order to adopt a predictive model, which favours decision-making for the sake of human
resource management. by Ballinger, Cross and Holtom ‘s and Rich’s study are useful in terms
of offering parameters around which predictive decision-making parameters like performance
and employee turnover can be based. But the suggestions offered by studies were in isolation;
without an action plan or a model for their implementation. Puhakainen and Siponen’s study
for the implementation of a training program similarly suffers from the lack of an adequate
model to be tested for practical feasibility in organisations.

5. HR ANALYTICS AND PREDICTIVE DECISION-MAKING MODEL

Post the review of a relevant existing literature on HR analytics and predictive decision-making,
the following model was designed considering the relevance of effective decision-making for
organisational success. The proposed model is based on the literature reviewed earlier.
The outlined model, Figure 1 is based on the studies surveyed by Ballinger, Cross and
Holtom (2016) whose study posits how data acquired about the network structure of the
employees can serve as a predictor for employee turnover rates. Similarly, the proposed model
looks at how data acquired through various parameters can affect employee performance, as
outlined in Rich et al’ (2010) study, and can be evaluated using analytics tools. As per the
literature reviewed earlier, Puhakainen and Siponen’s study evaluated the need for employees
to be trained in the information systems security policies of the organisation in order to ensure
that they comply with the prescribed policies. In the context of the present study, the required
training-related interventions that need to be made in this regard can be understood through
data gathered on the existing levels of training and awareness among employees. Once such
information has been acquired, it can be analysed through analytics tools in order to lead to
conclusions about predictive decisions that need to be made with respect to training
requirements and provisions for employees. The model presents a visual representation of how
analytics-based interventions can be used for predictive decision-making about various
parameters that are pivotal to organisational operation.

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 HR Analytics: A Modern Tool in HR for Predictive Decision Making

Figure 1 HR Analytics and Predictive Decision-making model

6. RESULTS AND CONCLUSIONS

The present research aimed for an exploration of existing literature with the aim of
understanding the relationship between human resource and analytics and understand the role
it plays in the improvement of the existing range of managerial and HR related research. The
study’s focus was on investigating on the future of HR analytics if integrated into the company
to assist managers in predictive decision-making based on statistical evidences and relevant HR
analytical data and literature. Also, the focus was on examining the IT infrastructure and
technological interventions, including those that affect the way data is mined stored and made
in terms of the effective implementation of HR analytics and the need for them in order to be
efficient in terms of data storing in order to be relevant for HR analytics.
A significant conclusion drawn from the review of literature on the integration of HR
analytics in the domain of human resource management makes it clear that while suggestions
for theoretical models that could be adopted for the hassle-free integration exist, there is a lack
of literature that reviews the real-world applicability of these models and has reviewed the
success (or failure) of these models or strategies when implemented in the context of
organisations.
Exploration of the literature related to predictive behaviour point out that the data analytics
in the field can help in identifying specific parameters that can aid both HRM and HRD in an
organisation. Predictive modelling, similar to the model outlined in the present study, can be
used to ensure that raw data helps in drawing important inferences and genuine insights that aid
organisational growth. However, the existing literature resources could be further enhanced in
terms of studying case studies of predictive models to accurately gauge the relevance and
feasibility of the models created for specific industry sectors. This is significant because
predictive decision-making and modelling cannot be homogenously used across industry types
and enterprises as they will vary according to various parameters such as type of enterprise, the
industry it is functional in, the number of employees and amount of resources it can expend for
HR analytics.

7. CONTRIBUTION TO KNOWLEDGE
This paper contributes greatly to the field of human resource management in which the
information explores the range of possibilities that HR analytics opens up for tasks in HR and
administration. The findings point to possible success of analytics-based intervention and how
it impacts the predictive decision making on parameters which are pivotal to the operation

http://www.iaeme.com/JOM/index.asp 61 [email protected]
 Dr. Abdul Quddus Mohammed

within the organization. Further insights and significant conclusions, for the scope of the large-
scale implementation of HR analytics and its implications for future, can be drawn from the
review of literature carried out. The conclusions drawn can also be useful for comprehending
the range of possibilities that HR analytics opens for tasks such as predictive decision-making
and the limitations of these posited tasks.

8. RESEARCH LIMITATIONS
The main limitations of the following research predominantly centre on the availability of
literature on the issue. There is an existing gap in which the existing literature on predictive
modelling and organizational studies is limited in range. Hence, there is a need for existing
literature to be sufficiently nuanced and to be based on case studies of predictive modelling and
organisational studies so as to ensure that models and roadmaps being endorsed are tried, tested
and fail-safe. Due to this, the present study was limited in the range of literature available for
review.

SUGGESTIONS FOR FUTURE RESEARCH

Future research should consider focussing on case studies of predictive modelling and
organisational studies in an effort to identify the models and roadmaps from different
organizations which have been tested, tried and successful. The research should also focus on
a more quantitative approach to the research with the aim of observing predictive modelling as
an aspect of HR analytics on an organizational setting.

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