1/15/2021

Info. is Critical for better HCM

HCM: is concerned with systematically
analysing, measuring, evaluating the role of HR policies/practices
19. HR Analytics in HR value-creation
and
Artificial Intelligence
in HR Value-creation
HCM

Debi S. Saini, Ph.D.

(debissaini@gmail.com)

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Analytics & AI facilitate better HCM

Criticality of Info. support in view of the following:

•Rapidly changing environment

•Chaotic Global competition

Knowing about Big Data
•Demanding customers and
Analytics
•Disruptive technology
• Getting appropriate info. in different areas is a
Critical Success Factor
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Analytics & AI defining the New Age

 Talk of the 2nd machine age
--Klaus Schwab (Founder & Exe. Chairman of WEF) talked of “4th Indl. Revolution: Built on:
AI—robotics—nano-tech.—quantum computing—Autonomous vehicles—5G

Role of HCM
in  Its hallmark: Analytics & AI: AI is biggest breakthroughs of 21st century

Strategic HRM
 Merits of AI:
Better decisions—Less Cost—Less numbers needed—Freedom from drudgery

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 1/15/2021

Role of Analytics in New HR What are Some Unpublished Data Sources?

Thinking
• HR decisions are imp.; can’t be based on guesswork/intuition • Facebook • SMSs received/E-mails

•Analytics elevate the HR function; speak bus. language • Cos’ CRM programs • Online buying behaviour

• LinkedIn/twitter • Advertisements
• Help optimize operations & better people mgt.
• Other social media • Dating sites

•Those using HR analytics

will outperform those who don’t
• Recruitment work • Amazon

What is Analytics? What, Where & How of Data in HR Analytics?

•Analytics encompasses a range of techniques for How to make better decisions using big data e. g. HR Analytics can predict these
• Info on how to do job better
•Cos have a lot of structured info.;
collecting, analyzing, and interpreting data but huge unstructured info. in environment • Employee past behviour helps predict her stay
so as to reveal patterns, anomalies, key variables, and relationships
(the “known unknown” & the “unknown unknown”) •HCM uses info. after event’s occurrence; •Predict who may leave
now it can be done before that
• Knowing talent needs; how to meet them
•Involve simultaneous application of statistics, computer programming, •Big data is a predictive model; adds value
• Talent acquisition: sources/methods
and ops. research (OR) to quantify performance
—Uses most current methods in Comp. Sc., Statistics, & Mathematics •Can predict product & orgl. performance
--e.g. if planning addl. plant: where (4 choices)
• Knowing how employees learn better

•Where are best skill sets available?

• Is used to describe, predict, improve bus. performance •Mktg./sales in this since long; HR too to do that
•Which trng. leads to HPWS/engagement
—Helps innovative co. extract value from uncertain data

Big Data Dynamics & Its Relevance

CURRENT TRENDS IN ANALYTICS - BIG DATA An Example of How HR Analytics works?
When the volume, variety and • How to figure out high turnover besides exit interviews?
D VOLUME velocity of data exceed an org.’s
a storage or computing capacity for – Data interpretation skills help professionals spot trends
VARIETY
t accurate & timely decision-making
DATA SIZE

a VELOCITY
•Profile of the team or manager
VALUE

S •Compensation structure
i
z •Empowerment interventions
e
e
•Perception of career opportunities
TODAY
Today THE
TheFUTURE
Future •Employee care
Copyright © 2012, SAS Institute Inc. All rights re se rv e d.

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What kind of Info. in environment can help? Some Possible Areas of Application of AI
What actual use Knowing Expertise What are the
Regional •Driverless cars; travel & navigation
of Education
level is made
of people is in interests of
•Drones for delivering shipments
• Orgl. success depends
profile which areas people in my co.
By connecting What one •Military ( sensors, threat detection/ on how effectively it
Changing expec- Buying behaviour
data co. can tell a does in tations of people of Gen Y/Z
identification, marking enemy positions)
combines people,
story leisure time? •Robots in production/service areas
Changes in What do •Health care diagnostics
strategic processes and
We say our teams What skills are
are successful; but available in values of Gen Z blogs/newspapers •Finance & stock market (best portfolio or technology intelligently
say
to deliver
stock based on preferences by scanning the market data)
don’t know why? which region
How can •Governance (facial recogn. for surveillance)
What makes a
How often people
check LinkedIn
Ethical norms
of people
leader time mgt. •Advertising (predicting customer behavior) transformational
be improved •AI-enabled customer assistants
•Risk modeling value at optimized
Which are key
What can be
done with expertise of Passive
Which types of
employees are How far Comp &
•Answering emp./customer queries
•Education (grading/assessing students)
cost.
talent; & how to Ben issues impact
grievance likely to form engagement?
motivate •Social media (past web searches, spams)
data to engage unions 13 16
them to be sourced

AI Can support 3 types of business needs

• Automating bus. processes
(robots; invoicing; google map; self-driving cars)

• Cognitive Insight through data analysis (e.g. actuarial modeling;

quality problems based on warranty; customer digital behaviour)
Nature of
Artificial Intelligence (AI)) • Cognitive Engagement with customers & employees
(Using chatbots, ML, etc: health diagnosis/recos; product recos)

A 2018 research involving 152 cognitive technology projects found

that AI fell in the above 3 categories as under:
Robotic (71 [47%]); Data analysis (57 [38%]); Cognitive engagement (24 [16%]).

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What is AI?… New Era of Cognitive Computing

AI is the ability of a digital computer, or •IBM Watson in forefront of computing: cognitive computing
--CC is system capability that can understand, reason & learn

computer-controlled robot --Can access, simulate & make sense of huge data (structured/unstructured)
--200 M. pages of structured/unstructured content; 4 terabytes disk storage

to perform tasks
•Systems reason like humans do
commonly associated with human intelligence

• Humans can work on few dimensions; AI is augmented intelligence: can work on 100 or 1000+
•Value locked in huge data: derive value from this on a daily basis
• Future: Surgeries through AI—Robots in co. Boards

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AI is defining the skills needed in Management

Top Ten Abilities in 2015 and in 2020
In 2020 In 2015
1.Complex problem-solving 1.Complex problem-solving
2.Critical thinking 2.Coordinating with others
3.Creativity 3.People management
4.People management 4.Critical thinking
5.Coordinating with others 5.Negotiation
6.Emotional intelligence 6.Quality control
7.Judgement & decision-making 7.Service orientation
8.Service orientation 8.Judgement & decision-making
9.Negotiation 9.Active listening
10.Cognitive flexibility 10.Creativity
Source: Futures of Job Reports, World Economic Forum
1-19

Technology Applications in HR…

• Hiring: Profile screening—video-based job interview—Pattern matching of
resumes to JD & predicting suitability—reduces bias, promotes diversity—AI
helps tap passive talent

• Predicting retentions and attritions

AI Applications •Personalized on-demand learning:

•Rewards: Cogni Pay suggests pay raise on many indicators

• Helps creating Workplace Experience: Empowering human-machine

partnership--Align emotional, intellectual, physical, technological, cultural aspects
(e.g. Mars Petcare: provides “Pet-paternity” )

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Some Interesting AI Examples

 IBM’s Watson software defeats humans
in cognitive computing —It has 200M pages data (4 terabits)

 Schindler: uses AI to cope with lift break down

 Marriott uses it to deliver towels in rooms & booking

 Mukoto story: AI helps sorting cucumbers