analytics

1. Concepts to Understand HR Analytics as an
Approach
1. Resources Base Perspective vs Behavioural Perspective
2. Hard Systems Approach vs. Soft Systems Approach
3. Descriptive HR Analytics vs Predictive HR Analytics
4. Descriptive Statistics vs Inferential Statistics

2. Resource Based vs Behavioural Perspective to
HRM
1. Resources Based Perspectives: The resource-based view (RBV)
argues that a firm's sustained competitive advantage is based on its
valuable, rare, inimitable, and non substitutable resources (Barney,
1991). The capability of firms to create or acquire these resources
affects their performance and competitiveness over their
competitors.
2. Behavioural Perspectives: The behavioral perspective of
HRM assumes that employee behaviors are malleable—that is,
people are generally motivated to behave in ways that socially
approved of by others and so are responsive to a variety of
informational cues.

3. Business Strategy HR Strategy
1. Cost Leadership
• Suitable for repetitive and
predictable behavior
• Concerned with short term
focus and quantities
• Result Oriented
Utilisation Strategy
• HR strategy focused on short term
performance measures that is result and
outcomes
• Efficiency is the norm, job assignments
are specialized, explicit job description
• Hierarchical pay, few incentives
• Narrow career paths, limited training
• Limited employment security
• Cost cutting may involve incentive for
employee to leave the firm
• Limited participation
Linking Business Strategies with HR Strategy

4. Business Strategy HR Strategy
2. Differentiation
• Long Term Focus
• Creative Job Behaviour
• Moderate concern for quality
and quantity
Facilitation Strategy
• Broad Career Paths
• Extensive Training
• Equal and Fair pay, many incentives for
creativity
• Long Term performance measure
• External Recruitment and Hiring of people
who brings new ideas
• High Employee participation
• Some employment security

5. Business Strategy HR Strategy
3. Focus
• High concern for quality
• Moderate concern for quantity
• Long/Medium- term focus
Accumulation HR Strategy
• Equal and fair pay with many incentives
• Hiring employees belonging to the target
market
• Broad career paths with extensive training
• High employee participation
• Some employee security

6. Life Cycle Stages HR Practices
Start-up •Flexible patterns of work
•Recruitment of highly motivated and committed employee
•Competitive Pay
•Little Formality
•No Unions
Growth •More sophisticated recruitment and selection
•Training and Development
•Performance Management Processes
•Reward System
•Focus on High Commitment
•Developing Stable Systems
Maturity •Attention to the control of labour costs
•Focus on increasing productivity
•Strained employee relations
•Control Compensation
Decline •Emphasis on rationalisation of workforce and downsizing
•Abandoning some longstanding practices to cut costs
•Trade Unions have a marginalised role
•Retraining and career consulting services

7. Soft Vs Hard HR System Approach
• Soft HRM includes practices
such as:
• Two-way communication
• Business transparency
• Higher wages
• Investing in employee
wellbeing
• Training and career
development programs
• A democratic management
style
• Hard HRM includes practices
such as:
• One-way communication
between management and
professionals
• Performance reviews that fail to
motivate or provide constructive
feedback
• Minimum wages
• High turnover
• Hierarchical leadership system
Source: https://www.hibob.com/hr-glossary/soft-hrm-hard-hrm/

8. Traits Soft HRM Hard HRM
Employer perspective
Employees are individuals to
invest in
Employees are a resource
Management style
Collaborates with, guides, and
leads people
Delegates tasks
Work culture
Productivity and wellbeing-
centered
High intensity, task-driven
environment
Career development
Prioritizes learning and
development
Prioritizes getting the job
done
Recruitment method
Depends on the candidate’s
potential to succeed in the
job, integrate with team
members, and contribute to
the company
Depends on the candidate’s
skills and competencies
Organizational style Autonomous Traditional hierarchical format

9. Descriptive Analytics
• Descriptive analytics is the basic type of analytics you’re most likely used to.
It’s taking historical data and summarizing it into something that is
understandable.
• For example, a headcount report of all employees within the organization is a
form of descriptive analytics. Even taking it a step further to break it down by
demographics would still be in the same category.
• More sophisticated metrics like turnover rates or time-to-fill would be
descriptive as well. They rely on the past and aim to explain why something
already happened. Only focusing on descriptive analytics is very reactive. HR
that is evolving to align with business needs should focus on being proactive.

10. Predictive Analytics
• Where descriptive analytics look backward, predictive analytics work to look
ahead. Statistical models and forecasts are used to answer the question of what
could happen. Models are built on patterns that were found within the
descriptive analytics. The goal is to proactively find the needs of the organization.
• Predictive analytics can help talent acquisition teams determine if someone will
be a good cultural fit for the organization before they’re hired. It could even
provide estimations on how long the person will stay with the company.