Corporate Performance and Human Resource Analytics

Summary

The scientific article that has been selected for this assignment is titled “Bridging the Gap: Why, How, and When HR Analytics Can Impact Organizational Performance,” which was published on January 12th, 2022. Human resource (HR) analytics have become increasingly popular, although it is still unclear if they may affect corporate performance. The purpose of this article is to examine this crucial topic by identifying the factors that influence corporate performance and explaining why, how, and when HR analytics improves it.

In order to evaluate the chain mediation model connecting HR technology, HR analytics, evidence-based management (EBM), and organizational performance, the methodology employed in the article made use of data gathered from 155 Irish firms. The findings represented in the article lend credence to the chain model by indicating that having access to HR technology makes HR analytics and EBM possible, both of which improve business performance.

This work makes a substantial contribution to the discourse on HR analytics and EBM. First, it deepens our comprehension of the factors that influence HR analytics’ ability to improve company performance. Second, the authors note that having access to HR technology makes HR analytics possible and is a prerequisite for it. The influence of EBM on corporate performance is supported by empirical data, which is presented as a further justification.

Response

This chapter aims to reflect on several topics and identify the impact of the implications from the business world perspective. The response to the selected article refers to three topics covered in the first chapter of the Human Resource Management textbook, which include performance improvement, technology trends, and evidence-based management (Dessler, 2022). The article touches on various topics relevant to contemporary HR management. Compared to prior legacy informational systems, the enormous expansion of access to HR technology, such as human resource information systems (HRISs), has given HR teams the capacity to gather, manage, and monitor vast amounts of personnel data. For instance, using cutting-edge HR technology to capture and analyze applicant and employee records, Google’s HR analytics team has developed an evidence-based strategy to enhance its recruiting and talent assessment procedures (Shrivastava et al., 2018, as cited in McCartney & Fu, 2022). The article also reflects on the current trends in the corporate world by pointing out that firms may handle other HR issues, including performance management, diversity, inclusion, and retention, by using HR analytics and EBM.

The study discussed in the article advances the field of HR analytics by offering proof that there is a connection involving HR technology and HR analytics. The HR analytics approach is supposedly made possible by HR technology, according to new academic theories. For instance, academics have argued that HR technology facilitates HR analytics by enabling the gathering, processing, and reporting of both organized and non-structured labor input (McIver et al., 2018, as cited in McCartney & Fu, 2022). As a result, the work demonstrates that there is a connection between HR technology and HR analytics, with HR technology serving as a crucial prerequisite and forerunner to HR analytics.

Such discoveries can make a significant contribution to the business world. In order to allow forecasting and prescriptive analytics, the paper recommended that technically sophisticated HR departments use more advanced systems and types of HR technology, such as BI tools, AI-enabled portals, and transparent statistical software (McCartney & Fu, 2022). Particularly firms who are seeking to deploy or extend their current HR operations or are attempting to enhance their current HR IT capacities. According to the author, HR technology enables business associates and HR managers to generate reports, build infographics, track KPIs, and do predictive modeling (McCartney & Fu, 2022). Allocation of HR technology is essential for giving HR specialists the tools they need to collect, interpret, and present the data so that senior management can make better policies.

Creating and maintaining a decision-making environment offers considerable benefits for organizational effectiveness. Asking, obtaining, appraising, aggregating, implementing, and evaluating are only a few of the tasks that HR EBM involves (McCartney & Fu, 2022). Employers must, for instance, turn a problem or issue into a statement that can be answered or carefully looked for and gather the most reliable evidence possible. The paper also highlights the assistance of HR analytics’ critical function in promoting EBM. For illustration, HR analytics provides data via tools like scorecards, dashboards, and data modeling. Such sources of knowledge management integrate HR analytics and EBM, enabling HR employees and business partners to make decisions about their personnel that are better analyzed.

Managers and company leaders are required to make crucial decisions to increase the performance of their firms in regular business engagements. While some employees will rely on a variety of data to back their choices, many do it simply on intuition, stale knowledge, or past observations. The predominance of out-of-date methods emphasizes how vital it is to include EBM in the business world. This article suggests that reliable data, solid analytical competencies, and the capacity to act strategically are corporate assets that can convert data into findings that can be used by the organization’s EBM power to provide proof that will contribute to organizational success (McCartney & Fu, 2022). To sum up, the business community could utilize the corporate data produced by implementing evidence-based management and factor it into overall decision-making

References

Dessler, G. (2022). Human resource management. (16th ed.). Generic.

McCartney, S, & Fu, N. (2022). Bridging the gap: Why, how and when HR analytics can impact organizational performance. Management Decision, 60(13), 25-47.

McIver, D., Lengnick-Hall, M. L., & Lengnick-Hall, C. A. (2018). A strategic approach to workforce analytics: Integrating science and agility. Business Horizons, 61(3), 397–407.

Shrivastava, S., Nagdev, K., & Rajesh, A. (2018). Redefining HR using people analytics: the case of Google. Human Resource Management International Digest, 26(2), 3–6.

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