HR ANALYTICS

UNIT-II: DATA VISUALIZATION.

The world of HR Variables:

There is a common perception that if employees are satisfied, they are automatically
committed to the organization and vice versa. A satisfied employee is more likely to
feel at home in an organization than a dissatisfied one. A committed employee is also
less likely to be dissatisfied. In itself, this thought is not without justification. There is
indeed an interaction between both HR variables. The impact of commitment is,
after all, strengthened by the degree of satisfaction.

Interaction between HR variables:

Even so, these are independent variables which can partially influence each
other, but can also occur on their own. To give an example: an employee can feel as
if he/she fits into an organization. He identifies with the organization and would
like to continue working there for another few years. He feels very committed to
the organization and is prepared to perform well in order to make it more
successful. Unfortunately, the pressure at work has recently increased considerably.
He becomes very dissatisfied with the amount of work he has to do and the limited
time in which he has to do it. He simply cannot produce good work anymore and is
very dissatisfied about this. This does not have to imply that he no longer feels as if
he fits into the organization. He can still feel committed, while at the same
time experiencing a feeling of dissatisfaction with work-related aspects such as, in
this case, the pressure.
A satisfied employee, on the other hand, does not need to feel committed to
the organization per se. He can be satisfied because he works in a nice team
and considers his colleagues to be his friends. As a result, he enjoys going to
work every day. In order to be satisfied, the employee does not by definition have
to support the goals of the organization or to feel like he fits into the organization.

Thus, a high degree of satisfaction among employees does not automatically mean

that the degree of commitment to your organization is correspondingly high; and
committed employees may not necessarily also be satisfied with things such as the
performance or structure of your organization. The same applies for variables such
as motivation, efficiency, effectiveness, absence and turnover.

HR variables that help to provide insight:

The specific HR variables that help to provide an insight into the way in which your
employees view the organization, but particularly also their attitude towards your
organization, are:

 Satisfaction
 Employee commitment
 Motivation
 Employee Engagement
 Loyalty
 Effectiveness
 Efficiency
 Customer orientation
 Absence
 Turnover
 Performance
  Employee Vitality

Because a beneficial interaction between the variables cannot be assumed, and

is organization - or even situation -dependent, it is particularly interesting and
useful to measure how the variables score per organization and even per
organizational unit.

CORRELATION:

A correlation is a statistical measure of the relationship between two variables. The

measure is best used in variables that demonstrate a linear relationship between
each other. The fit of the data can be visually represented in a scatterplot. Using a
scatterplot, we can generally assess the relationship between thevariables and
determine whether they are correlated or not.

The correlation coefficient is a value that indicates the strength of the relationship
between variables. The coefficient can take any values from -1 to 1. The
interpretations of the values are:

 -1: Perfect negative correlation. The variables tend to move in opposite

directions (i.e., when one variable increases, the other variable decreases).
 0: No correlation. The variables do not have a relationship with each other.
 1: Perfect positive correlation. The variables tend to move in the same
direction (i.e., when one variable increases, the other variable also increases).

How to Find the Correlation?

 The correlation coefficient that indicates the strength of the relationship
between two variables can be found using the following formula:

Where:

 rxy – the correlation coefficient of the linear relationship between the

variables x and y
 xi – the values of the x-variable in a sample
 x̅ – the mean of the values of the x-variable
 yi – the values of the y-variable in a sample
 ȳ – the mean of the values of the y-variable
 

In order to calculate the correlation coefficient using the formula above, you
must undertake the following steps:

1. Obtain a data sample with the values of x-variable and y-variable.

2. Calculate the means (averages) x̅   for the x-variable and ȳ for the y-
variable.
3. For the x-variable, subtract the mean from each value of the x-variable
(let’s call this new variable “a”). Do the same for the y-variable (let’s call this
variable “b”).
4. Multiply each a-value by the corresponding b-value and find the sum of
these multiplications (the final value is the numerator in the formula).
5. Square each a-value and calculate the sum of the result
6. Find the square root of the value obtained in the previous step (this is
the denominator in the formula).
7. Divide the value obtained in step 4 by the value obtained in step 7.
You can see that the manual calculation of the correlation coefficient is an
extremely tedious process, especially if the data sample is large. However,
there are many software tools that can help you save time when calculating
the coefficient. The CORREL function in Excel is one of the easiest ways to
quickly calculate the correlation between two variables for a large data set.

Example of Correlation:

John is an investor. His portfolio primarily tracks the performance of the S&P
500 and John wants to add the stock of Apple Inc. Before adding Apple to his
portfolio, he wants to assess the correlation between the stock and the S&P
500 to ensure that adding the stock won’t increase the systematic risk of his
portfolio. To find the coefficient, John gathers the following prices for the last
five years (Step 1):

Using the formula above, John can determine the correlation between the
prices of the S&P 500 Index and Apple Inc.

First, John calculates the average prices of each security for the given periods
(Step 2):
 

After the calculation of the average prices, we can find the other values. A
summary of the calculations is given in the table below:

Using the obtained numbers, John can calculate the coefficient:

 
 

The coefficient indicates that the prices of the S&P 500 and Apple Inc. have a
high positive correlation. This means that their respective prices tend to move
in the same direction. Therefore, adding Apple to his portfolio would, in fact,
increase the level of systematic risk.

DATA EXPLORATION:

Data exploration definition:Data exploration refers to the initial step in

data analysis in which data analysts use data visualization and statistical
techniques to describe dataset characterizations, such as size, quantity,
and accuracy, in order to better understand the nature of the data.

Data exploration techniques include both manual analysis and automated

data exploration software solutions that visually exploreand identify
relationships between different data variables, the structure of the
dataset, the presence of outliers, and the distribution of data values in
order to reveal patterns and points of interest, enabling data analysts to
gain greater insight into the raw data.

Data is often gathered in large, unstructured volumes from various

sources and data analysts must first understand and develop a
comprehensive view of the data before extracting relevant data for
further analysis, such as univariate, bivariate, multivariate, and principal
components analysis.

‍
Data Exploration Tools:
Manual data exploration methods entail either writing scripts to analyze
raw data or manually filtering data into spreadsheets. Automated data
exploration tools, such as data visualization software, help data scientists
easily monitor data sources and perform big data exploration on
otherwise overwhelmingly large datasets. Graphical displays of data, such
as bar charts and scatter plots, are valuable tools in visual data
exploration.

A popular tool for manual data exploration is Microsoft Excel

spreadsheets, which can be used to create basic charts for data
exploration, to view raw data, and to identify the correlation between
variables. To identify the correlation between two continuous variables in
Excel, use the function CORREL() to return the correlation. To identify the
correlation between two categorical variables in Excel, the two-way table
method, the stacked column chart method, and the chi-square test are
effective.

Data exploration tools include data visualization software and business

intelligence platforms, such as Microsoft Power BI, Qlik and Tableau.

Available open source data exploration tools can also incorporate

regression functionality, data profiling and visualization capabilities, which
enables businesses to integrate various, disparate data sources for faster
data exploration.

Some popular open source tools include Knime, OpenRefine, NodeXL,

Pentaho, R programming and RapidMiner.

There is a wide variety of proprietary automated data exploration

solutions, including business intelligence tools, data visualization
software, data preparation software vendors, and data exploration
platforms. There are also open source data exploration tools that include
regression capabilities and visualization features, which can help
businesses integrate diverse data sources to enable faster data
exploration. Most data analytics software includes data visualization tools.

Why is Data Exploration Important?

Humans process visual data better than numerical data, therefore it is
extremely challenging for data scientists and data analysts to assign
meaning to thousands of rows and columns of data points and
communicate that meaning without any visual components.

Data visualization in data exploration leverages familiar visual cues such

as shapes, dimensions, colors, lines, points, and angles so that data
analysts can effectively visualize and define the metadata, and then
perform data cleansing. Performing the initial step of data exploration
enables data analysts to better understand and visually identify anomalies
and relationships that might otherwise go undetected.
 THANK YOU!