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CASE STUDY OF HUMAN CAPITAL
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Human resource analytics (HR analytics) is an area in the field of analytics that refers to applying analytic
processes to the human resource department of an organization in the hope of improving employee
performance and therefore getting a better return on investment. HR analytics does not just deal with
gathering data on employee efficiency. Instead, it aims to provide insight into each process by gathering
data and then using it to make relevant decisions about how to improve these processes.
HR has core functions that can be enhanced by applying processes in analytics. These are acquisition,
optimization, paying and developing the workforce of the organization. HR analytics can help to dig
problems and issues surrounding these requirements and using analytical workflow will guide the
managers to answer questions and gain insights from information at hand, then make relevant decisions
and take appropriate actions.
The use of predictive HR analytics to drive the people agenda – and thereby growth – is applicable
across a core of HR activities. For example, comparing the personality traits or ratings against behavioral
competencies of sales people with their actual sales achievements (and identifying those most likely to
sell the most) can provide critical information to a business both in terms of hiring decisions and as a
route to understanding skills development needs. In many ways, an activity such as this is not new, as
the comparison of sales people’s characteristics with their sales performance has been done by
industrial psychologists for years. However, the rapid ability for HR itself to collect, integrate and
interpret large amounts of data and predict its business impact are important new developments.
HR attempts to draw data from a range of unconnected, non-integrated systems. Such initiatives can, by
their very nature, be time consuming and expensive. However, technological advances – particularly the
introduction of cloud-based HR management systems – make it increasingly easy for all people data to
be housed in a single, standard format.
Once the data has been integrated, HR leaders need to find a new kind of HR specialist with strong
analytical and statistical skills sets to make the most of the data available. In essence, what was once
considered a niche skill set within HR needs to be given a far greater degree of prominence within the
function. To be useful, HR analytics must extend beyond reporting what is (the present) or what was
(the past) to predicting and analyzing what will be (the future).
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Key objectives/ goals:
In the absence of meaningful analytics, we may actually miss out on two grounds. One, we may
not be able to assess the return on our HR investments; second, and perhaps more importantly,
lack of analytics may actually take us in the wrong direction. For example, there are companies
that excessively invested in promoting employee referrals as common sense dictated that
higher the employee referrals lower the hiring costs and higher the joining rates. This is
accurate, but in terms of what an excessive focus on referrals can do to an organization in
terms of quality and its impact on customer satisfaction may tell a different story!, there are
many more goals of HR analysis which includes;
To identify opportunities for HR Impact.
To support Organizational Strategic planning
To prioritize HR investments and actions
To demonstrate the bottom-line impact of HR practices and programs
To enable managers make better decisions regarding workforce management
To better align HR strategy with corporate strategy.
In human resource analysis organization needs to analyze all the human resource related activities but
the best analytics will most likely focus on certain areas including:
Creating value in human capital.
Many organizations will have strategies to engage and motivate employees – not just to meet short-
term business goals but to ensure the employees continue to be successful. The most useful questions
to ask about these strategies will relate to how they can best be further developed. Companies have to
take analytical approaches to these strategies not just view them as measurements. To create value
through engagement, organizations could use a range of demographic or socio graphic factors to
identify groups of similar individuals who could be engaged in similar ways.
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Social capital – the greatest new opportunity.
Social capital is often one of the greatest opportunities for organizations to develop new capabilities.
That’s because in most organizations, how people work together is more important than the quality of
the individual involved. Together with other measures of engagement activities, a social network
analysis can help companies understand what types of people are most able to work together as a
Sources of performance.
Organizations should use analytics to better understand the qualities that indicate which employees will
perform well in their jobs. For example, companies could look at whether someone has ever held a
leadership position, and for how long, as well as his competencies and other factors like tenure, and
number of promotions etc.
Companies should analyze the things that make the leaders of an organization effective, and maybe
even analyze what effective leadership looks like in the first place.
Human capital supply chain.
For example, organizations should also analyze how well they are investing in their employees.
Analyzing human Capital:
HR Human capital" is a phrase widely used in human resources circles to describe employees and their
collective knowledge, skills, abilities and capacity to develop and be productive.
The concept of human capital is semantically the mixture of human and capital. In the economic
perspective, the capital refers to ‘factors of production used to create goods or services that are not
themselves significantly consumed in the production process’(Boldizzoni, 2008). Along with the meaning
of capital in the economic perspective, the human is the subject to take charge of all economic activities
such as production, consumption, and transaction. On the establishment of these concepts, it can be
recognized that human capital means one of production elements which can generate added-values
through inputting it.
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Successful Human Capital Centric Organizations go with the rule that ”Provide each role in your
organization with relevant information that enable the workforce to better support sustainable growth”.
They do it by;
Providing deep HR metrics insights.
Placing analytics in context with business processes.
Aligning strategic decisions with the overall business plan.
These steps results in;
Efficient use of the workforce.
Better business decisions.
Exceptional employee / manager service experience.
With perceiving about the importance of human capital, organizations tries to effectively and efficiently
measure their human capital to understand their current status and thereafter implemented various
ways to improve their human capital. Therefore, it can be recognized that human capital measurement
is an important source in terms of suggesting various policies regarding human resources.
There are five drivers of Human Capital Management. (Appendix)
In respect of human capital analysis we have selected an institute and analyzed its human capital and
value in it.
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Single site case study:
In this research we have selected an institute to do analysis of its human capital.
Interviews have been taken to do this study. In this study we have taken interviews to the director of the
institute. This method have been selected because there is not large number of participants.
On the basis of the interviews transcription, and in the framework of our content analysis, we
interpreted the data on the basis of the recurrence of the human capital components and HR practices.
Data treatment has been performed manually, grouping all the critical human capital components and
Organizational culture and strategy:
Hiast( Hyderabad Institute of Arts, Science & Technology):
The Hyderabad Institute of Arts, Science & Technology, on 1st August, 2001, imbibing in its ambit wide
ranging areas commensurate with job market and other national developmental needs of the country.
The institution is envisaged to develop the potential of progressively turning in to a full fledged
University. The institute consists of 21 employees. It is being managed by the executive director of the
institute and the organization is of flat structure (Appendix 2). Company’s culture core values consists of
excellence, expertise, and rules and principles.
In the framework of human resource management, Hiast do not have a formal HR department and have
Analysis of human capital and its value. In this section we took the particular context of an institute in
to account and tried to analyze Hiast’s human capital an its value( how much investment in human
capital). For this purpose we took interview of the director of academics. On the basis of interview found
that in terms of value in human capital Hiast do not invest in its employees ( do not provide formal
training) there is not any type of formal training being given to employees of Hiast. Instead of hiring
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teachers as employees HIast outsource its services to the visiting teachers. 90% of the teachers are
visiting mean 90% of the teaching services are outsourced which is a large proportion.
In terms of skills Hiast do not strictly go for technical skills except accounts related employees and
computer department related employees but there are more experienced employees. In terms of
communication skills Hiast’s all employee contains good communication skills as to give weekly
presentation and to deal with customers. In terms of computer skills Hiast’s all employees have skills to
deal with computer there is not any employee who can not deal with computer. Hiast’s all employees
are with have good interpersonal skills to deal with other employees. In terms of multi tasking skills
Hiast have many employees who can manage multiple tasks and assignments as needed.
In terms of knowledge a told above Hiast outsource most of its services which are knowledge related the
remaining services are taken by employees are not that services which require particular knowledge
except accounts personnel and computer department personnel. But depends on the nature of job on
the higher posts Hiast have more experienced employees. On the lower level of management there are
not much experienced employees.
Transverse discussion and Conclusions:
In this study, we analyzed “human capital and its value” of Hiast. We immediately noticed that most of
the services which related to human capital are outsourced. There is not any value (investment) in
employees as not any certain types of training being given. Hiast has employees with good
communication skills and more computer skills.
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Director Academics Mr. Abdul Razaque Laghari
Program Coordinator-BSIT Ms. Shahzana Memon
Program Coordinator-MBA Ms. Shanzehra
Registrar Maj. Khadim Hussain (R)
Assistant Registrar Ms. Nida Masroor
Secretary to Executive Director
Controller of Examinations Mr. Abdul Razaque Laghari
Assistant Controller of Examinations Mr. Umer Barakzai
Lab Assistant Mr. Niaz Khan
Lab Assistant Ms. Sadia Kanwal
Webmaster Mr. Shahmir Hassan
Librarian Mr. Ehsan Rashdi
Faculty Counter Incharge Morning
Faculty Counter Incharge Evening Mr. Ali Nouman
Assistant Director Information & MarketingMr. Rashid Anjum
Information Officer Mr. Adil Ghani
Information Officer Ms. Urooj Kanwal
Accounts Officer Mr. Revachand
Accounts Assistant Mr. Muhammad Haris Khan
Admin Officer Mr. Ajmal Khan