HR Metrics and Analytics Essay

1133 Words 5 Pages
The function of Human Resources in corporations usually includes the use of metrics and analytics through collection of data on the employees’ efficiency. HR metrics are used to quantify the cost and the impact of employee programs and HR processes and measure the success or failure of HR initiatives (Missildine, 2013). The company is able to track trends and changes with the data collected as it provides for measurement function that helps with HR planning. HR metrics measure the value of the time and money spent on HR activities in the company and together with HR metrics is the HR analytics which is the process of combining data mining with business analytics techniques to analyze human resources data (Missildine, 2013) and provide an …show more content…
Therefore, to address the organizations’ basic concern of HR metrics and analytics having clear impact on managerial decisions is to identify such metrics and analytics that will provide the needed information for better decision making.
The systematic HR management is associated with significant organizational effectiveness that is demonstrated by the alignment of HR activities with corporate strategy that results to strategic partnership. Managing the HR function efficiently is an important strategic positioning which means performing different activities from rivals or performing similar activities in different ways to the extent that HR can drive human capital performance in these activities and contributes to firm performance (Becker, & Huselid, 2003). Becker also emphasized that selection of measures used must be aligned with the corporate strategy conforming to Ulrich’s conclusion that selection of metrics should not only convey the values, priorities and organizational structure of the company but also operate at the individual employee level to drive performance in those key areas that are measured (Ulrich, 1996). The basic notion that HR needs are highly contingent on a firm’s business strategy is still widely supported (Boswell 2006). The strategic HRM approach seeks to drive organizational performance through managing human resources based on business goals (Kamoche 2001;

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