Over the years HRS has not been looked at as a business partner, but a separate part of an organizational. Not having a seat at the table when It came to business activities. One reason why more organizations do not implement HRS analytics is that this is a resource not yet used by many organizations. A lot of organizations are not aware of the advantage of HRS analytic. If human resources are going to have an important impact in staying on top of competition in the marketplace then a different type of thanking must be applied.
Another reason Is that most business leaders and HRS top level management do not make people decision with the same level of critical thinking castles and rational as they do other business decisions. "They rather depend on their gut feeling and intuition rather than gathering data, and using it to make relevant decisions about how to improve processes in their organization" (Mathis & Jackson, 2011, p. 68). For example, applying analytic processes to the HRS activities can improve employee performance resulting in a better ROI.
HRS analytics can be used to track productivity over a period of time Just Like the tracking of finances. The analytical processes correlate business Information and people information. HRS analytics can also play an important role in maintaining organizational competitiveness, and strategic planning for HRS effectiveness. For example, showing the impact that the HRS activities have on the organization as a whole. Analytics can aid in a cause and effect relationship between HRS work and business results, and then formulating, implementing, and evaluating strategies using that data.
In Dalton to what has been said above in making a case for adopting HRS analytic one can say with a firm resolution that HRS analytics will greatly enhance the organization. It is imperative to look at human assets as a very important investment in an organization because human assets are what bring about a need for all other assets. No one have every told me that they have an organization without human assets. Firms that base their decision making largely on data and analytics Increase their output, and productivity by 5 percent to 6 percent, compared to those that don't" ( Watson, 2013, p 50. 1. This also expresses that there Is a growing need for analytics in organizations, and leader are beginning to realize that firm are turning to analytics to enhance organizations. In light of the second part of the question, there are various features of the HRS function that are related to being a strategic partner (Lawyer &Mohrman, 2003).
HRS need to develop and understanding about how metric works. For example, the real life operations of the business that has to do with metrics, and understanding which data to capture, and how to manipulate that data. In order to accomplish this HRS would have to work closely with the accounting department. HRS needs to develop its ability to measure how human capital decisions affect the business and how business decisions affect human capital. Develop analytic models that will show relationship between HRS practices and the effectiveness of the organization.
For example, human capital return on investment and human economic value added. The understanding of analyzing, and the Interpreting data Like this can lead to Improvement In human capital. HRS need to measured findings. These are specific measures tied to HRS performance indicators. There are two last things HRS needs to develop, a plan to follow on how to compete effectively, sustain its' self, grow, and develop an evidence-based approach to making HRS decisions on the basis of quantitative tools and models.