ANALYSING DESCRIPTIVE,

PRESCRIPTIVE, PREDICTIVE &

DIAGNOSTIC FRAMEWORK AT
HR ANALYTICS WORKPLACE
Submitted To: Prof Abdul Qadir (Assistant
Professor (HR & OB)

Group 8

AASTHA SINGH (Pgma1901)

HRITHIK MAHAJAN(Pgmb1932)
KHYATI SINGH (Pgfb1928)
VIBHUTI RAGHUWANSHI (Pgfb1925)
SHIVANGI SONI (Pgmb1932)

Company Studied: ABC

Industry Mentor: Ms. XYZ
Manager-Workforce Analytics at ABC
(original source not disclosed due to request by source)
Table of Contents
DESCRIPTIVE ANALYTICS..............................................................................................................................3
Researched and made by Khyati Singh and Vibhuti Raghuwanshi

DIAGNOSTIC ANALYTICS..............................................................................................................................5
Researched and made by Aastha Singh

Predictive analytics......................................................................................................................................7
Researched and made by Shivangi Soni

Prescriptive Analytics.................................................................................................................................10
Researched and made by Hrithik Mahajan

Primary Data Sourcing / Final editing and compiling- Done by Aastha Singh
DESCRIPTIVE ANALYTICS
Descriptive analytics is the most basic form of analytics concerned with interpreting past data and
learning what changes been made in current time as compared to past data.

Data of Facebook likes and most trending hashtags on twitter maybe some example of descriptive
analytics. Historical data is drawn out to map some identifiable pattern in order to plan further and
merely to study changes, error in past strategies etc. HR Descriptive analytics focuses upon looking back
to find out source of past failures and success.

Descriptive analytics helps us quickly render the mistake undertaken in past actions, it instantly points us
to area where improvement is necessary.

PREDICTIVE

PRESCRIPTIVE
DESCRIPTIVE

How descriptive analytics works

Descriptive analytics constitutes two tools, i.e.: Data aggregation and data mining. Firstly data
aggregation helps in collecting and sorting the data to facilitate a manageable dataset.

Data mining comes after data aggregation where different patterns and trends are put together
to frame sense out of dataset. These patterns are then studied/ analyzed by analyst and
professional managers that makes out content useful for further improvements.

A manager, analyst may draw conclusions out of datasets from any given period: 6 months, 6
years or 16 years, collection of data is not enslaved to time limits.

DESCRIPTIVE ANALYTICS IN HUMAN RESOURCES

HR analytics is related with analyzing impact upon HR metrics such as retention, attrition, time to hire
etc. In HR field, descriptive analytics maybe keeping tab upon headcount of employees demographically.
Studying the pattern of turnover and calculating turnover rate would also suffice under descriptive
analytics as HR descriptive analytics is all about ascertaining why and how something happened in past
and how to align with business goals.

 Tools used in HR descriptive analysis: data mining and data aggregation, basically to collect data
to study what happened in past.

 Useful analytical software: Power Bi, Tableau etc.

 HR descriptive analytics may be done through aligning employee dashboard.

 This helps answers: Which sources used for maximum hiring in past 6 years, Reason for
employee turnover, attempts made in past towards their retention, helps compare expense
against HR functions etc.

How descriptive analytics Covers HR Functions.

 Recruitment- Comparison of post-test assessment and prior to test assessment of candidates.
 Employee training- Analysing training duration and improvement in productivity of those
employees in comparison to other
 Retention and turnover rate analysed on previous pattern of employees leaving the organization
and their reason for leaving.
 Performance appraisal- Trend in past rating of employee’s performance etc
 Workforce planning is best example of descriptive analytics in HR

Descriptive analytics is fast upon rendering gaps in employee engagement or employee performance-
these gaps are noticed before they become a problem and disrupt functioning of entire organization.
This approach is the best to ascertain ROI, i.e., return on Investment against expenses incurred and
business goals aligned with daily scheduling of functional department.

DIAGNOSTIC ANALYTICS
In simple words, the category of analytics that you use to ask your results, why did it happen?
We deep dive in data to find useful insights. Descriptive, the first stage of analysis in
organisations' data analysis, is a simplified method that identifies the details about what has
already happened. Diagnostic Analytics is taking a step forward to discover the logic behind the
findings. Diagnostic analysis is conducted using methods such as data mining, data acquisition,
correlations, drill-down. Analysts identify points in the analysis that will help them grasp the
findings. Drilling down means to concentrate on a particular facet of the data or a certain
widget.

Data mining is an automated method to extract information from a big collection of raw data.
And discovering consistent patterns in the data will help you decide the conditions of the
inquiry.

It is the role of analysts to classify the data points that will be used. This also allows them to
search for trends beyond the company's own databases. Data from external sources can need
to be drawn to establish associations and determine causality. Data plays an increasingly
important role in every business. Using diagnostic software, you can get the most out of it by
turning the nuanced data into visualisations and ideas that anyone can take advantage of.

• E.g., in Healthcare- help to determine reason for symptoms

• FMCG-reason for sudden loss in sales

Projects done using Diagnostic Analytics

Why are women low in a division?

Why is diversity low?

Why low employee engagement?

Why is hiring time too high as per industry standard?

STEPS OF DIAGNOSTIC ANALYTICS

MAKE A
DASHBOARD

PERFORM STATISTICS
(REGRESSION, MEAN, MEDIAN, MODE TOOLS
ETC) TO ANALYSE REASONS REGRESSION ANALYSIS
ANOMALY DETECTION
CLUSTERING ANALYSIS

POINT OUT THE REASON

REASONING
AND
ANALYSIS
Predictive analytics
The use of data, statistical algorithms, and machine learning techniques to identify the
probability of potential outcomes based on historical data is predictive analytics. The aim is to
go beyond understanding what has happened in order to have a better evaluation of what is
going to happen in the future.

Predictive analytics techniques

 Classification model - Most algorithms for machine learning fall into one of two
categories: classification-based regression. Both styles have different applications for
predictive analytics, while classification algorithms are useful for sorting data into
groups. Models of classification can help organisations distribute capital, human or
otherwise, more effectively. Companies, for example, are better able to maintain
inventory at acceptable levels and avoid a store from being overstaffed at certain hours.

 Regression model - If a company needs to estimate a numerical value, a regression

algorithm comes in handy, such as the time a prospective customer will take to return to
an airline reservation before purchase, or how much money someone will spend on car
payments for a given period of time. Linear regression, for instance, is a commonly used
form of regression that looks for a relationship between two variables. Such types of
regression algorithms find patterns that predict interactions between variables, such as
time spent by customers visiting an online store.

 Neural network - Biologically inspired data processing techniques are neural networks
that take past and present data to predict potential values. Their architecture helps
them to identify complex connections hidden in the data, in a manner that simulates the
pattern detection mechanisms of the human brain. They consist of several layers that
take input (input layer), measure predictions (hidden layer), and provide output (output
layer) in the form of a single prediction, and are commonly used for applications such as
image recognition and patient diagnosis.

The power of predictive analytics is derived from a broad variety of techniques and
technologies, including big data, data mining, statistical modelling, machine learning, and
various mathematical processes.

For example: how to stop attrition by predicting who is going to leave?

Predict what:

 Date of attrition
  Check from which profile people leave
 Reasons for leaving
 Age group of attrition
 What level has first attrition
 Zone of attrition (north, south)
 Find out the combination of people who leave most (huge, medium, low possibility).

So the budget is made ones a year in terms of money and people required for business,
technology. If the person is willing to work from home permanently, then wages, allowance will
change from state to state and tier 1 to tier 2 cities.

POC – proof of concept ( as per prediction)

Before it is implemented, it is an experiment that attempts to determine the importance,

validity and/or viability of a solution or concept. It is usually used in Big Data and AI to assess a
use case. In these types of projects, the hardest part is that data scientists need to deal with
data from a Data Lake, which involves the planning and processing of data. This is why the Data
Engineer is also interested, because to make it work, the two of them need to work together.

Steps of prediction

1. Get data of past 3 to 5 years and analyse and understand the data.
2. What’s happening around? Example – is attrition high in all organization or only mine
(through Forbes/ Mckinsey survey) study market trend
3. Make predictive model
 Clean up the information by eliminating outliers and processing missing data
 Identify an approach to the use of parametric or nonparametric predictive
modelling
 Pre-process the information into a shape appropriate for the modelling
algorithm chosen.
 Specify a subset of data to be used for model training.
 Train, or estimate, model parameters from the collection of training data
 Model efficiency or goodness-of-fit checking to verify the adequacy of the model
 Validating the accuracy of predictive modelling on data not used to calibrate the
model
 If satisfied with its results, use the model for prediction.
4. Give POC by screening on past data ( team of 2 people – if company is small/ team of 6
people – if company is big)
5. Actual prediction as per POC – do POC for 1 month and check attrition. The company
should also understand data in past market too.
 For example – if the HR submit report in January, then the company should wait for 2
months to check whether the attrition is right. It is done by checking how much they
matched as per the model made previously. If it is lets take 60% match then on a
concluding note the model is 60% match. Now the company can put data to real model
for next year.

While predicting, the company needs to have the accuracy level upto 60% to 80%. After that if
the company wants to save time, they check attrition for last year or before, as per today’s
model. Creating model means making algorithms and combinations. Different weightage is
given to different parameters as per past data.
Prescriptive Analytics
Prescriptive analytics is known as the final stage of the business analytics, At it’s initial stages it
also involves descriptive and predictive. As it is known to be the final stage of the business
analytics uses computational and mathematical sciences application for suggesting the decision
options. By using machine learning prescriptive analytics prescribes the best course of action
businesses can take with the help of computer program prediction.

Prescriptive analytics is not only limited to what will happen or when will it happen but also the
fact that why it will happen. Prescriptive analytics can takes the data again and again to make
predictions and prescriptions again and again which help to bring more accuracy in prescribing
the best course of action.

Prescriptive analytics include both structured as well as unstructured data, also with the help of
some advanced analytic techniques it predicts and then prescribes. Ayata trademarked the
term prescriptive while it was first introduced by IBM rather the concept is around 100 year old.
They use the technology of combining computational, mathematical models, business rules and
hybrid data for its functioning.
Prescriptive analytics Discovers- How can we make it happen?
Action Specific, Optimization, Graph Analysis, Simulation, Neural Networks, Recommendation
Engines. Totally dependent on accuracy of descriptive and predictive as they are one who
makes the basis for it.

Steps for Prescriptive analytics-

 What you actually want to achieve out of it?
 perform statistics regression

Tools Used-
 Google tools for all analytics

E.g., of Prescriptive analysis

 Tesla’s self-driving function which enables the car to make million of calculation in
particular set of time so that it can drive itself like a human behind the wheel.

E.g., of Prescriptive analysis done in organisation-

 Improve employee retention leading to reduction in training cost.
 Increase in sales employee productivity by improving routing plan.
 Number of people to take in a new section