Learning Unit 3 Model of HRD Analytics PDF

Learning Unit 3 MODEL OF HRD ANALYTICS Instructor: Helmi Sumilan KMS2154 HRD ANALYTICS [email protected] +60198471184 LEARNING OUTCOMES At the end of this lesson, you will be able to: Explain the HR Discuss the LAMP...

Learning Unit 3 MODEL OF HRD ANALYTICS Instructor: Helmi Sumilan KMS2154 HRD ANALYTICS [email protected] +60198471184 LEARNING OUTCOMES At the end of this lesson, you will be able to: Explain the HR Discuss the LAMP analytics framework, model of HR analytics.  Individual factors : skills, competencies, motivation, job Group factors : interpersonal alignment, career aspirations, relations, leadership, group number of years working with cohesiveness, collaboration. the organization. HR Action: training, team FRAMEWORK building, compensation & rewards, career development, OF HR talent management, performance management. ANALYTICS HR process improvements in terms of cost, quality, cycle time improvement, innovation & productivity. Strategic results in terms of improved market share, Financial results in terms of market growth, successful new market capitalisations, profit, product launch, brand return on assets & equity, awareness, customer improved cash flow. satisfaction & retention. Adapted from Dipak Kumar (2017)  How HR Analytics Framework Works? HR analytics All HR decision correlate people Organization can making data with balance their processes can be Facilitating business data to Quality of HR strategies & made more meaningful HR assess how HR decision can be business plans effective with partnership with function can improved. more in terms of appropriate & the organization. exert impact on HR capabilities. timely strategies & interventions. business results. In order for HR analytics to be conducted, measurement system is needed.  THE LAMP MO DEL  L A M P LOGIC ANALYTICS MEASURES PROCESS THE LAMP MODEL The letters in LAMP stand for logic, analytics, measures, and process; which are four critical components of a measurement system that Boudreau & Ramstad (2004). drives strategic change and organizational effectiveness.  THE LAMP MODEL LOGIC ANALYTICS MEASURES PROCESS Logic is understood in terms of Help in finding answers in the The process of counting & it Reinforces actionable insights & analysis of impact, effectiveness data & are primarily drawn on could be scorecards, helps in developing required & efficiency. statistics & research design. dashboards and so on. strategies for effective decision- making. THE LAMP MODEL The LAMP metaphor refers to a story that reflects today's HR measurement dilemma.  One evening while strolling, a man encountered a drunk person diligently searching the sidewalk below a streetlamp. "Did you lose something?" he asked. "My car keys. I've been looking for them for an hour," the person replied. The man quickly scanned the area, spotting nothing. "Are you sure you lost them here?" "No, I lost them in that dark alley over there." "If you lost your keys in the dark alley, why don't you search over there?" "Because this is where the light is." Source: http://www.informit.com/articles/article.aspx?p=1669502&seqNum=3 WHAT DID YOU LEARN FROM THE PREVIOUS STORY?  THE “The right analytics” Valid questions & result (information, design & LAMP MODEL statistic) “The right measures” sufficient data (timely, HR measurement systems are reliable & available) only as valuable as the decisions they improve and “The right process” the organizational Effective knowledge management (value, effectiveness to which they culture & influence) contribute. HR measurement systems create value as a HR Metrics & “The right logic” catalyst for strategic change. Analytics that are Rational talent strategy (competitive advantage, a force to strategic talent pivot point) change. LOGIC (L) - What Without proper logic, it is The logic element of any measurement system provides the Are the Vital impossible to know where to look for insights. "story" behind the connections between the numbers and the effects and outcomes. Connections? Where proper logic is in place then, it Eg. Connections between is quite easy to assist other managers health/wellness and employee outside the HR career to comprehend A P and utilize the measurement systems turnover, performance, and LOGIC MEASURES to improve their judgment. absenteeism ANALYTICS PROCESS L M Eg. Connections between HR and Eg. How selecting employees is similar to optimizing a supply chain for talent, to management practices, which affect help leaders understand how to optimize employee attitudes, engagement & turnover, which then affect the experiences of all elements of employee acquisition, not customers, which affect customer-buying simply maximize the validity of tests or behaviour, which affects sales, which affect the quality of recruitment sources. profits.  Companies who are This is the step that able to understand The connection Are there the connections helps companies to between the connections Where are the between their HR know where to look numbers and between employee connections in your practices & Analytics helps to for insight and effects and health and wellness business practices people’s issues and highlight the connect data points outcomes is vital in and employee and your employee how they impact connections. to meaning in order understanding the turnover, for performance? the business are to make better “why”. instance? the most successful decisions. in implementing changes that matter.  Even a very rigorous logic with good measures can flounder if the analysis is incorrect. Eg. Some theories suggest that employees with positive attitudes convey those attitudes to customers, who, in turn, have more positive experiences ANALYTICS (A) - and purchase more. Finding Answers Suppose an organization has data showing that customer attitudes and in the Data purchases are higher in locations with better employee attitudes. This is called a positive correlation between attitudes and purchases. Organizations have invested significant resources in improving frontline- employee attitudes based precisely on this sort of correlation. However, will A P a decision to improve employee attitudes lead to improved customer LOGIC MEASURES purchases? ANALYTICS PROCESS L M Analytics is about drawing the right conclusions from data. It includes statistics and research design & it then goes beyond them to include skill in identifying & articulating key issues, gathering & using appropriate data within & outside the HR function. Analytics transforms HR logic and measures into rigorous, relevant insights.  Analytics is really You may have data that That may very well be Analytics allows you how data can provide suggests that your true, but analytics to dig deeper with a employees are engaged in answers. their work based on software and more holistic employee feedback systems will help you approach. It reveals surveys; you may also identify the the right conclusions have customer surveys relationship and let from the data and that indicate they are you draw more transforms satisfied with their interactions with your accurate insights. information into brand. You may believe relevant, meaningful that more engaged knowledge. employees work in a way that produces higher customer satisfaction and more loyalty.  Virtually every area of HR has many different measures. Much time and attention is paid to enhancing the quality of HR measures, based on criteria such as timeliness, completeness, reliability, and consistency. These are certainly important standards, but lacking a context, they can be pursued well beyond their optimum levels, or they MEASURES (M) - can be applied to areas where they have little Getting the consequence. Numbers Right Much debate centres on the appropriate formulas to use in estimating turnover and its A P costs, or the precision and frequency with LOGIC ANALYTICS MEASURES PROCESS which employee turnover should be calculated. L M Lacking a common logic about how turnover affects business or strategic success, well- meaning managers draw conclusions that might be misguided or dangerous, such as the assumption that turnover or engagement have similar effects across all jobs. PROCESS (P) - Making Insights Motivating & Actionable Effective measurement The initial step in systems must fit within a effective measurement A P change-management is to get managers to The best approach may LOGIC MEASURES process that reflects accept that HR analysis be to present relatively ANALYTICS PROCESS principles of learning & is possible and simple measures and L M knowledge transfer. HR informative. The way to analyses that match the measures and the logic make that happen is not mental models that that supports them are necessarily to present managers already use. part of an influence the most sophisticated process. analysis.