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Fundamentals of Human Resource Management 6th Edition by Raymond Noe, John Hollenbeck, Barry Gerhart,Patrick Wright
Edition 6ISBN: 978-0077718367Fundamentals of Human Resource Management 6th Edition by Raymond Noe, John Hollenbeck, Barry Gerhart,Patrick Wright
Edition 6ISBN: 978-0077718367 Exercise 9
Making the Most of HR Analytics
HR managers can be a valuable partner in decision making if they know how to use analytical skills and data. Here are some guidelines to follow:
• Hire HR employees with statistical knowledge and analytical skills. This may require recruiting employees who previously specialized in other functions. At the same time, current HR employees lacking skill in this area should consider additional training.
• Talk to business leaders about the talent challenges they face. Identify problems that you could help answer if you had more information, and determine the kinds of data that could give you that missing information. These are situations where data analytics can help.
• Review the assumptions the HR department currently makes. Test those assumptions to see if you can improve your decisions. For example, a financial services company tried to recruit and select the best salespeople by identifying graduates with the best grades from the most prestigious schools. To check its assumption that these were the most effective salespeople, it compared the sales performance of its units with the educational backgrounds of each unit's salespeople. It learned that other factors were more important than educational background. Then, by shifting its hiring decisions, the company added millions to its sales revenue.
• Make a practice of thinking about the business impact of HR activities. Frame them in terms of questions. For example, what is the impact on engineering costs and quality if you hire temporary (contract) workers instead of permanent employees What is the relationship between managers' participation in leadership training and the performance and employee turnover of the managers' departments Investigate such questions, implement improvements that the results suggest, and then measure whether the changes are improving the organization's performance. These are steps toward creating a high-performance organization.
How might the use of data analytics improve the quality of decisions that had been based on intuition and experience
HR managers can be a valuable partner in decision making if they know how to use analytical skills and data. Here are some guidelines to follow:
• Hire HR employees with statistical knowledge and analytical skills. This may require recruiting employees who previously specialized in other functions. At the same time, current HR employees lacking skill in this area should consider additional training.
• Talk to business leaders about the talent challenges they face. Identify problems that you could help answer if you had more information, and determine the kinds of data that could give you that missing information. These are situations where data analytics can help.
• Review the assumptions the HR department currently makes. Test those assumptions to see if you can improve your decisions. For example, a financial services company tried to recruit and select the best salespeople by identifying graduates with the best grades from the most prestigious schools. To check its assumption that these were the most effective salespeople, it compared the sales performance of its units with the educational backgrounds of each unit's salespeople. It learned that other factors were more important than educational background. Then, by shifting its hiring decisions, the company added millions to its sales revenue.
• Make a practice of thinking about the business impact of HR activities. Frame them in terms of questions. For example, what is the impact on engineering costs and quality if you hire temporary (contract) workers instead of permanent employees What is the relationship between managers' participation in leadership training and the performance and employee turnover of the managers' departments Investigate such questions, implement improvements that the results suggest, and then measure whether the changes are improving the organization's performance. These are steps toward creating a high-performance organization.
How might the use of data analytics improve the quality of decisions that had been based on intuition and experience
Explanation
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The case discusses about the HR analytic...
Fundamentals of Human Resource Management 6th Edition by Raymond Noe, John Hollenbeck, Barry Gerhart,Patrick Wright
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