Evolution Of HR Analytics & Importance Of Data Analytics and HR

Introduction 

Human Resource Management emphasizes striking a healthy balance between organizational needs and employee desires. The evolution of Human Resource Management in India has taken center stage in recent years and is keeping up with the industry. 

Human Resource Management is quite dynamic. As a strategic partner in the company’s expansion, the function has changed from an earlier format that only involved handling payrolls and managing employee resources. Today, we can see that innovative HR practices are becoming a core component of corporate culture and a competitive advantage for many businesses. 

Evolution of Human Resource Management 

In the past 150 years, the Human Resource Management profession has undergone significant change. Today’s function, which was first designed to manage people hiring and compensation, closely reflects a company’s strategic goal. 

HRM has developed through successive industrial revolution periods, trade unions, scientific management, behavior science, and human relations. 

1. Industrial Revolution ( Between 18th-19th century ) 

Firms first started managing their employees during the Industrial Revolution in the late eighteenth century. Large companies were prevalent before this time, but it was difficult to keep them running because of outdated technologies. The working environment was highly unpleasant at the time, and the employees used to work long hours for meager pay. 

During this revolution, science and technology began to be used in many aspects of employment in contemporary businesses. 

Discipline, boredom, materialism, job relocation, interdependence at work, and impersonality were all effects of the Industrial Revolution. Economically speaking, the revolution greatly accelerated the accumulation of products and wealth. 

2. Trade Unions (close to 19th century) 

As a result of the industrial revolution, employees’ conditions under the factory system were appalling. Their circumstances were even worse during the First World War. At this time, it was seen necessary for the government to step in and protect the interests of the workers. 

Trade unionism’s fundamental tenet was to protect workers’ interests and provide solutions to issues like child labor, excessive working hours, and unfavorable working conditions. These unions employed a variety of tactics to get their grievances recognized, including strikes, slowdowns, walkouts, picketing, boycotts, and sabotage. 

These labor union actions resulted in the establishment of personnel practices, including collective bargaining, a grievance system, arbitration, disciplinary procedures, employee benefit programs, and justifiable salary structures. 

3. Scientific Management ( 1900 -1920) 

Taylor began utilizing time and motion studies to identify the “one optimal way of doing things” at the turn of the 20th century. He was able to boost worker productivity as a result of his studies significantly, and he also wrote a book on scientific management as well as other papers based on these trials. 

The following are the main tenets of scientific management: 

  • Replacing the rule of thumb with science 
  • Promoting harmony over conflict 
  • Encouraging teamwork over individualism 
  • Fostering the growth of every individual 

Functional foreman standardization, simplicity of work, and a differential piece wage system are scientific management practices pertinent to workers’ management. 

4.  Human Relations (1930-1950) 

The Hawthorne experiments, which Elton Mayo and his Harvard colleagues carried out between the 1930s and 1950s, demonstrated that factors other than job design and rewards could affect an employee’s productivity. These factors included social and psychological ones. The human relations movement was responsible for the widespread adoption of behavioral science approaches. 

It entails the use of supervisory training methods, aid to employees, counseling services, and tactics to improve relations between management and labor. The employees who participate in these programs can talk to counseling professionals about both personal and professional issues. 

5. Behavioural Science ( 1950 – 1960) 

The management of people started to be influenced by behavioral science as we realized that dealing with various types of people required a more adaptable strategy. Large organizations recognized the potential of enhancing employee perks to attract, retain, and motivate workers after the war when the economy started to rebound. 

In a “behavioral approach,” the environment is altered to change the probability of the intended behavior in a preferred manner. The reinforcing principle is used to increase that likelihood. The punishment concept is used to lessen such likelihood. The extinction concept is applied to eradicate behavior. 

What Is Human Resource Analytics in 2022?  

The study of people and the implementation of analytical methods to the human capital within a company to enhance staff productivity and improve employee retention is known as Human Resource analytics.  

Human Resource analytics identifies recurring trends and patterns in HR operations. These are presented through statistics and graphs to make it simple to spot changes. Your employee turnover rate, absenteeism rate, time to hire, cost to hire, the proportion of lamented losses, and many other statistics may be found in these stats. 

Human Resource analytics can help firms launch profitable initiatives and projects. With the help of the analyzed and interpreted data, they even defeat marketing and competition. 

You may learn about the skill gap in your firm via Human Resource analytics. 

Employers have trouble filling the skill gap, according to 87% of them. With so many excellent individuals departing your organization, this issue is unavoidable. For the current employees that seek job stability, advanced training is necessary to keep your quality. 

Human Resource analytics Example 

The following real-world example will help you better understand how analytics are used in HR functions. 

Say, for example, that a certain department within the company is experiencing a steady increase in employee attrition. Human Resource analytics will assist in determining the cause by examining historical information about former employees, their statements, employee profiles, performance, etc. The candidate may have left the company because of a potential mismatch between the job role and the one they were employed for. There may be numerous factors that Human Resource analytics can pinpoint. 

Data Analytics and HR 

In association with HRM, data analytics is referred to as HR Analytics. HR managers widely use this branch of Analytics. It is also known as people, workforce, or talent analytics. You no longer need to rely on gut instinct when using people analytics. HR workers may make data-driven decisions thanks to analytics. Furthermore, analytics can be used to measure the efficacy of HR policies and actions. 

 

Conclusion 

Human Resource management has evolved considerably throughout the years. Modern software and technology have made managing the workforce in every organization a breeze for human resources. Today, Human Resource Management is playing a more important role. Aligning personal and organizational aims and objectives is one of its main achievements. Strategic HRM focuses on initiatives that set the organization apart from its rivals and seeks to have a long-term effect on the firm’s success. We recommend you check out the offered by the UNext Jigsaw Academy. You get a digital certification from IIM Indore with a placement guarantee feature. Certificate Program in People Analytics and Digital HR offered by the UNext Jigsaw Academy. You get a certification from IIM Indore and master the nuances of analytics in HR. 

 

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