
Chapter 2- History and theories of HR Analytics


As of today’s reflection, I have learned the history of HR analytics and identified the theories related to HR Analytics. As for the past on how HR analytics has evolved from ages until today. It starts from the iron miners and steel industry in the late 1850s-1970s. The focus has shifted to viewing people as a valuable organisational resource and capability that can create a competitive advantage during the period. As a result, human and intellectual capital because key buzzwords in academic research and in the management community are large. I have learned four well-researched principles of human behaviour from an HR perspective: Hawthorne study, behavioural assessments, Geert Hofstede and People Management. I have learned two main contributors of HR Analytics: Dr Jac Fitzenz in HR Measurement and HR Metrics and Dr John Sullivan on HR Measurement and Talent Acquisition. The impact of HR on business can be referred to in the “The revised model: The Employee-customer_profit-chain”. This model highlights three important processes: a compelling place to work, shop and a compelling place to invest. According to the data, 5 unit increase in employee attitude towards the job and the company in the compelling area to work. 1.3 unit increase in customer satisfaction goes to customer satisfaction and 0.5 increase in revenue growth in investment. I have learned two important books that contribute to HR Analytics knowledge: The HR Scorecard and Moneyball. In the previous study, Google project oxygen, a research project conducted by google on good managers, attributes effective managers. I discovered that Barney (1991) expressed the advantages an enterprise has and their relation to competitive advantage for the first time in his Resource-Based Perspective on RBV Theory. He emphasised the importance of HRM and market integration. Any entity, according to RBV theory, has both tangible and intangible properties. Barney went on to say that capital should be used to get a strategic edge. Barney also emphasised the prerequisites for effective execution, which became known as the VRIO system (Valuable, Rare, Inimitable, and Organised). Many academics, however, have questioned the VRIO system, claiming that human resources alone are insufficient for competitive advantage. I have learned that VRIN Framework (Barny 1991) (V=Value, R=Rare, I=Costly to Imitate, N=Non substitutability) is a framework resource-based relies on resources tangibility that must be heterogenous or immobile and have VRIO resources that provide a competitive advantage. I have learned that human resource systems, HR policies must be in sync with the point of the organisation’s growth cycle and its market problems. HR and other roles collaborate cross-functionally as they are vertically aligned. HR can contribute to the achievement of corporate goals thanks to their synergy. The challenge is to use data to demonstrate the connection between HR, policy, and results. In terms of ground-breaking theories, I have discovered that the Big Data Age is regarded as replacing the telescope and microscope. Big data is assisting businesses in capturing previously unknown patterns and movements, find solutions to unanswered queries and manage uncertainty. Quantification of everything and anything relating to individuals and processes in the company has been one of the most significant intervention points of bigdata driven analytics, as the ‘human element’ is the main driver of growth.