The document discusses the limitations of people analytics and big data in capturing important human factors in organizations. While big data can provide insights, it risks making incorrect assumptions if it ignores important variables like employee morale, loyalty, and stress levels. Metrics like earnings performance may indicate a tyrannical manager is effective if they ignore the negative impact on their direct reports. It is important for analytics to consider both technical and "people" knowledge to best understand and predict human behavior and organizational success.

1. Under the internship of Prof. Sameer Mathur, IIM Lucknow
What People Analytics Can’t Capture
by Daniel Goleman

2. There is no doubt in the
fact that businesses are
reaping rewards from big
data analytics.

3. Though, experts caution that big data can
make unhelpful assumptions.
In any massive data analysis, for instance,
there will be random correlations that look
“significant” but actually are noise, not
signal.

4. And that’s where one needs
to realise that the most
readily available metrics for
predicting results may not
actually be the most
important variables in
organizational flourishing.

5. For example, let us take the case of a tyrant manager who can
force his people to work hard to meet quarterly targets,
while destroying the emotional climate that sustains the life-blood
of any organization.

6. Using an outcome metric like
an executive’s earnings
performance,
while ignoring his role as a
boss and his impact on the
morale, loyalty, focus, and
stress levels of his direct
reports, may result in a false
indication of who’s really the
best boss.

7. As Laszlo Bock, head of
hiring at Google explained,
the very fact the company
knows so much about
algorithms lets it see their
limits.

8. And therefore it’s important to realize that its
not only the technical knowledge that pays
off, but more importantly the ‘people’
knowledge, or the ability to maintain good
and healthy people relations at workplace.

9. The strongest predictor of a
person’s future behaviour is
their past performance itself.

10. And that performance gets
evaluated best by people
who know that person well.

11. Insights:
The article simply
focuses on the
importance of healthy
relationships among
the people at the
workplace and its ever
growing importance.

12. The best unique
business models are
built as a result of
collation and
prioritization of
ideas, along with an
equal and productive
participation of
everyone working in
a team, thereby
developing a charged
up scenario.

13. Managerial Relevance:
Its is important for
managers to realize that
for any business idea to
be successful, technical
and factual knowledge
and expertise is required,
but what is more
important, is that…

14. how these ideas of
innovation are combined
together with an
enthusiastic participation
of every team member,
ensuring the fulfillment of
the smallest but the most
important traits of human
nature such as
compassion, empathy,
respect and loyalty.

15. Jahanvi Khedwal
National Institute of Technology, Raipur
jahanvikhedwal.nitrr@gmail.com