Human Resource Analytics as a Strategic Enabler to Enhance the HRM Functions and Performance of Organizations

Abstract

In the modern world Human resource management (HRM) can be considered as a critical aspect of the operations and functions of management in the organization, which directly impacts the success of an organization. Although the HRM practices are already widely adopted in the organization, there are still several gaps and limitations that need to be studied to enhance the effectiveness of HR operations.  In such cases, the Human Resource Analytics (HRA) tools and approaches came out as a promising solution for highlighting such gaps and fulfilling the requirements of modern enterprises.  HRA tools generally depend on the data gathered and obtained from various methods to make decisions. Today’s era, where numerous smart systems and intelligent algorithms are adopted in companies to increase their efficiency, HRA tools promise an effective and positive change to make quick data based decisions. This paper investigates the consequences of using HRA tools in organizations to make data-based choices in the HR department. This work uses survey-based structure of gathering insights regarding the HRM and HRA functions. The findings highlighted that by using the HRA tools in HR functions, the effectiveness of HRM operations can be increased, enabling effective decision-making capabilities. The paper also mentioned that HRA tools enhanced the workforce efficiency and decision-making abilities of several organizations.  The average retention score was found to be 3.0025, with an average compensation score of 3.02. The research proposes accurate predictions related to decision-making and workforce effectiveness. The future scope of HRA tools is very positive, considering the current trend and positive outcomes.