The assessment on the Perceptin and Implementation of data analyt in Human resource

manageent

(In The Case of Ethio Nile insurance company)

RESEARCH PAPER

By:

...................................................

School of Commerce, CBE

Submitted to:

Department of BAIS, Management Academic Unit

School of Commerce, CBE

Addis Ababa University

As a Partial Fulfilment of Requirements for BA Degree in Management

 September, 2021

CHAPTER ONE: Introduction....................................................................................................................1

1.1 Background of Study.........................................................................................................................2
1.2 Statement of Problem........................................................................................................................4
1.3. Research Question............................................................................................................................4
1.4. Objective of the study.......................................................................................................................5
1.4.1 General Objective.......................................................................................................................5
1.4.2 Specific objective........................................................................................................................5
1.5. Significance of the Study.................................................................................................................5
1.6 scope of the study..............................................................................................................................6
1.7. Organization of the study..................................................................................................................6
2.1 introduction.......................................................................................................................................8
2.2. over view of HR analytics................................................................................................................8
2.3. HR Analytics.................................................................................................................................11
2.4. types of HR analytics.....................................................................................................................13
2.4.1 Descriptive Analysis.................................................................................................................13
2.4.2 Predictive Analysis...................................................................................................................13
2.4.3 Prescriptive Analysis................................................................................................................14
2.5 Importance of HR analytics............................................................................................................14
2.5.1 Data Analytics in Decision Making.........................................................................................15
2.5.2 Data Analytics in Conceptual Boundaries and Value Propositions...........................................16
2.5.3 Predictive Analytics for Human Resource in Organisations.....................................................16
2.5.4 HR Analytics as an Effective Evidence based HRM tool.........................................................16
2.6. Latest Development in Data Analytics...........................................................................................16
2.7 Human resource Analytics as a Game Changer for HR Professionals.............................................16
2.8 Employee Churn in Predictive Analytics.........................................................................................16
2.9 Technologies in HR data Analytics................................................................................................17
2.9.1 R Programming.........................................................................................................................17
2.9.2 Microsoft Excel........................................................................................................................17
2.9.3 Microsoft Power BI..................................................................................................................18
2.10 Human Resource Predictive Analytics in Organisations................................................................18

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 2.11. Human Resource Analytics in HR Practices................................................................................18
2.12. A new model for HR analytics......................................................................................................18
2.13 . Challenges for HR analytics........................................................................................................19
2.14. Perception of employee towards data analytics in HR management.............................................20
2.15. Chapter summey...........................................................................................................................21
3.1 chapter over view.............................................................................................................................22
3.2 study site..........................................................................................................................................22
3.3 sources of data.................................................................................................................................22
3.4 sampling method.............................................................................................................................22
3.5. Sample Size and Sampling Techniques..........................................................................................23
3.6. Data collecting method..................................................................................................................23
3.7. Data analysis method.....................................................................................................................23
CHAPTER FOUR: ANALYSIS AND DISCUSSION..............................................................................24
4.0. Introduction....................................................................................................................................24
4.1. Background of Respondents...........................................................................................................24
4.2. Analysis of responses to the Questionnaire.....................................................................................26
4.3. Limitation of the study...............................................................................................................30
CHAPTER FIVE.......................................................................................................................................31
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS..............................................................31
5.0. Introduction...................................................................................................................................31
5.1. Summary of Findings....................................................................................................................31
5.2. Conclusions of the Study...............................................................................................................31
5.3. Recommendations.........................................................................................................................32
5.3.1. Recommendation for Future Studies........................................................................................32
Reference...................................................................................................................................................32
APPEDEX.................................................................................................................................................35

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 CHAPTER ONE: Introduction
The growing trend in businesses is the application of data analytics which is making a great
impact in functional areas of firms. These areas are accounting (Earley, 2015) which has used
analytics to mine data about customers and competitors to make decisions about their products
and services by reducing errors and finding tax-saving opportunities to cut administrative costs;
Supply chain (Souza, 2014) which has centred on the use of global positioning systems, radio
frequency identification chips and data visualization tools to manage with real-time
information regarding quality and location of goods in the supply chain and to better match
supply and demand; and healthcare (Ward, Marsolo & Froehle, 2014) mainly focusing on
wellestablished techniques as biostatistics to analyse patient data to improve health care and to
generate accurate prescriptions from patient symptoms analysis.This goes to analyse how often
patients visit the hospital and what it means and this enables the health facilities to reduce
waiting time and potentially improve patient outcomes. The interest in the use of big data or data
analytics increases by the day due to the fact that it helps understand a social phenomenon, a host
of real-world applications (Raguseo, 2018) and plays a central role in decision-making (Power,
Heavin, McDermott & Daly, 2018). Big data has been described by extant literature as complex
data sets used in analysis and processes although it adds value to a firms productivity
and operations (Manyika, Chui & Brown, 2011; Marr, 2015). For data-driven
organisations (McAfee & Brynjolfsson, 2012), volume is an inherent property of big data aside
other properties such as velocity, variety,and variability. Companies now have access to a
growing volume of data to be able to derive insights for operational and strategic means
(Brynjolfsson & Saunders, 2009; Laney, Lettong & Lapkin, 2013). According to literature, the
introduction of technology has enabled the human resource function to gather, store and access a
chunk of employee data ( Heuval & Bondarouk, 2017) and insights generated through them for
improved organisational processes (Carter & Sholler, 2015).

Although Human Resource Management is late in joining the data analytics trend
(SHRM Foundation, 2016), HR professionals have recognized its potential for
understanding and optimising the workforce (Edwards & Edwards, 2016; Sullivan, 2013).
The interaction between HR analytics and human resource management is obvious as

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analytics help in optimising recruitment, assessment, promotion, retention, remuneration,
turnover as well as other aspects related to human capital management. The continuous
growth in the use of analytics has unlimited potential for organisational effectiveness and
efficiency. This is as a result of the ease with which data is collected and analysed
(Mclver, Lengnick-Hall, & Lengnick-Hall, 2018).

1.1 Background of Study

The introduction of information technology in recent years has had a significant impact on
human resource management practices (Gueutal & Stone, 2005; Parry & Tyson, 2011;
Kavanagh, Thite & Johnson, 2015). This has brought about a change in how firms recruit,
select, motivate as well as retain their employees. Now, leading firms or companies are looking
for a competitive advantage in their employees due to the importance of employees to
organisations (Kalianna & Ajovu, 2015).

Human resource management has evolved over the last three decades to replace the traditional
personnel management (Snell, 2011; Ulrich, & Dulebohn, 2015) and this evolution has been in
its theory, research,and practices. The work of the personnel manager ranged from taking care of
employee problems to administering labour contracts and being an administrative expert (Osei,
2017). Human resource management helps to improve on the quality of work life, ensure legal
compliance and productivity (Kramar et. al., 1997) and this can be achieved through the effective
operation of its functions (Osei, 2017).

Organisations are now using HR analytics in their recruitment and selection (Mohapatra, &
Sahu, 2017) where employers are able to track, measure, gather and analyse their candidate data
to make better hiring decisions (Koshy, 2016). Google through analytics has
revolutionised Human Resources by building retention algorithms and has refined their
recruitment processes (Mohapatra, & Sahu, 2017). The introduction of HR analytics enables
firms to track the skill set of their employees in a database that will serve as a yardstick towards
employee’s continuous development in the organisation. This is to make informed decisions on
when an employee will need a particular training and development program to suit the
everchanging market demands.In terms of performance, Google is able to use analytics to predict
their employee performance (Craig, Harris, & Egan, 2011). The use of analytics or HR
analytics is growing in the compensation literature (Mohapatra, & Sahu, 2017). Through this,
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there is effective oversight of the compensation and benefits programs within the organisation
which are very important especially when it comes to organisational performance (Karia &
Omari, 2015).

Although HR Analytics has been in existence since 1900, some researchers argue that it is a new
concept in Human Resource Management (Johannink, 2015) and they believe, it can help
businesses to be more effective and improve performance. HR analytics has been described as an
indispensable HR tool (Boston Consulting Group, 2014). This has been noted by researchers on
the powerful impact of HR analytics on organisational performance and a way for HR to
contribute or add value to the organisation (Lawler III, Levenson & Boudreau, 2004).
Examples are Google, Bestbuy, and Sysco that has improved on their competitive advantage
through the use of HR analytics (Davenport, Harris & Shapiro, 2010).

The hype in the cycle today is HR analytics (Soundararajan, & Singh, 2017) and as the interest
rises, organisations want to know more about it and how they can use them to improve
organisational effectiveness and to make strategic decisions about their workforce (Kavanagh, &
Carlson, 2012). A LinkedIn report in 2018 has indicated that, the United Kingdom, Sweden, and
Denmark are the top three countries that has adopted HR analytics fully. Also, there has been an
increase in the volumes of professionals in these countries who have indicated HR analytics
capability in conducting analysis on their human capital. This implies that, more countries
including Ethiopia need to embrace this new trend in HR both in tools and capability to match
up with other thriving economies like the ones indicated above.

In Ethiopia, the adoption and implementation of HR analytics has not been fully explored due to
the high cost incurred in acquiring an HR analytics tool making it available to a few fraction of
firms that can afford. Sierra-Cedar (2016) postulated that, about 45% and 51% of large and mid-
sized organisations respectively are investing huge sums of money on HR analytics. With the
complex nature of businesses in Ethiopia coupled with economic challenges such as weaker
currency, low savings, and low productivity (Amposah-Tawiah & Dartey-Baah, 2011), makes it
difficult for organisations especially public or indigenous ones to invest in HR analytics as other
countries due to the high cost of purchasing an HR analytics software (Jensen-Eriksen, 2016).

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1.2 Statement of Problem
Scholars of management have identified that organisational effectiveness is one of the most
central topics when it comes to the study of organisations (Lee & Brower, 2006). Therefore, for
organisations to be more competitive, frequent studies need to be carried out to identify
deviations and to solve workplace problems. It is very essential to identify and develop ways of
assessing organisational effectiveness rather than adding on to theories (Cameron &
Whetten, 1983) as no one approach to effectiveness is inherently superior to another (Cameron &
Whetten, 1983).

HR data analytics is unknown in most business organisations (HR Analytics, 2017)

making managers rely on their instincts rather than statistical and analytical approaches to
data evaluation. There is a goal to create awareness about HR analytics as a discipline to aid
business decision-making (HR Analytics, 2017).

Since the emergence of HR analytics, HR functions seem to be under intense pressure to

demonstrate its value (Holbeche, 2009) but the needed skills and competencies of those
involved in HR analytics is important (Bassi, Carpenter, & McMurrer, 2012). The ability to carry
out effective analytics to reap organisational benefits is not forthcoming as most
individuals within the HR function lack the necessary skills, knowledge,and insight (CIPD,
2013). Organisations, therefore, need to measure the capabilities of the employees within the HR
function to ascertain their readiness for HR analytics.

The extent of HR analytics usage in Ethiopia is un answered. As of now only a few studies have
been conducted with the perspective of both human resource professionals and business analysts
to collectively address questions like how human resource practices are based on analytics , and
the perception of HR professionals in implementing it.

So the overall aim of the study is to be a pioneer and identify the relevance of adopting and
implementing data analytics in human resource management to resolve problems that may arise
and increase competitive ground.

1.3. Research Question

 What is the perception of HR professionals in adopting data analytics?

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  What is the perception of HR professionals on affinity towards new technology?
 How to forecast the future workforce needs in application of data analytics?
 How effective is HR analytics in terms of increasing human resource management
productivity in the context of planning?
 Is HR analytics effective in human resource management productivity in the context of
retention
 Is HR analytics effective in human resource management productivity in the context of
recruitment and selection?
 Is HR analytics effective in improving human resource management productivity in the
context of training and development?

1.4. Objective of the study

HR analytics is expected to be a promising technology to grace HR . but there is no information
about the perception issues , the need for the level of advancement in technology and its overall
impact on business performance especially in a country like Ethiopia .

1.4.1 General Objective

The assessment of the perception and implementation of data analytics in human resource
management .

1.4.2 Specific objective

 Identify the attitude of HR professionals in the adoption of HR analytics
 Identify the technologies that are required to adopt HR analytics and it availability.
 Determine the competitive need for data analytics in human resource management
 Investigate the role of data analytics in HR if it is adopted.

1.5. Significance of the Study

The significance of this study can be looked at through the two major areas; practice
and research. In practice, the findings that will be obtained from the data collected will create a
term of reference which will help promote the use of HR Analytics in organisations as it will
inform HR practitioners on its benefits to people management resulting in organisational
effectiveness and increased performance resulting in high employee retention. The findings of
the study would,therefore,inform management on the need to institute measures that are aimed at
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enhancing the effective use of HR Analytics thus instituting it in business processes at the
workplace. The current study will go on to help as:

 help in identifying the importance of implementing data analytics to increase operational

efficiencies. it will be beneficial for HR professionals to analyze the factors that may
hinder or facilitate its application
 It will help companies become more technology based in doing their activity by
introducing a frame work like HR analytics.
 It is useful in determining HR personnel’s attitude towards the adoption of this
technology .
 This research is beneficial to understand how this frame work can be used to improve
employer –employee relation.

1.6 scope of the study

The research will concept rate on the assessment of the perception of data analytics .Data
analytics can be implemented in various departments of an organization to increase overall
performance. but this study is going to be limited on the implmentation of data analyt in HR
management in the case of Nile insurance company. So this study is focus on the application of
HR analytics in the nile insurance company. It focuses on only exploring HR analytics it is not a
comprehensive human resource management study .

1.7. Organization of the study

The study is organized in five chapters. The first chapter includes background of the study,
statement of the problem , objective of the study, significance of the study, and. The second
chapter is deal with review of related literature. It includes both theory as well as empirical
evidences related to the study topic. The third chapter is about methods of the study. It describes
the type and design of the research to be per sued, concepts adapted from previous studies, detail
description of participants/sample/ of the study, data sources, data collection tools and
procedures, methods of data analysis and the like. The fourth chapter covers results and
discussions about the research topic based on the result of third chapter. Here, the
results/findings of the study summarized and interpretation as well as discussion with the use of

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related literature review explained. Finally, the fifth chapter consists of a summary of the
findings, conclusions, and recommendation.

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 CHAPTER TWO: LITERATURE REVIEW

2.1 introduction
Many concepts have been developed to justify what data analytics is and its impact in human
resource management.

The literature review focuses on previous human resource analytics studies performed in various
parts of the world to examine the current state of understanding in the areas of human resource
analytics .

I attempted to perform a literature review by using different and relevant keywords and phrases
such as work force analytics, people analytics to various online databases such as google scholar
The literature review also contains in formations I gathered from articles and journals

The literature review pertaining to the study is presented in the following sections as below:

2.2. over view of HR analytics

Human Resource (HR) Analytics is not a new concept emerging today as it can be traced as far
back as the early 1900s (Kaufman, 2014) when Jac Fritz-enz, a pioneer in Human Resource
Management measurement published a book on “How to Measure Human Resources
Management” in 1984 (Fritz-enz, 1995). HR analytics is an HR practice enabled by technology.

The perception that human resources as a function has no impact on organisational performance
but creates cost or expenses must be addressed by Human Resource Practitioners. According to
Fecheyr-Lippens, Schaninger, and Tanner (2015), some organisations are generating up to $10
million in savings and improving on employee productivity and engagement simultaneously
thereby advancing the use of HR analytics in their firms. These misconceptions of HR not
making an impact on organisational performance is as a result of HR Practitioners not being able
to assess the real impact of human resources in an organisation Serban, 2014). Therefore, there is
a need for Human Resource practitioners to learn to speak qualitatively and objectively using
numbers (Fritz-Enz J., 2010).

HR has undergone a considerable transformation from a more administrative function to beinga

strategic business partner in organisations (Ulrich & Dulebohn, 2015)

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 Sustainability means a deliberate continuous attempt to utilize natural resources and other
resources to meet the needs of current human beings and non-human beings while not harming
the ability of future human beings and non-human beings to utilize natural and other resources to
meet their needs (Opatha, 2019).

According to Kirtane (2015) sustainable HRM practices include green HR practices, HR

analytics and HR Metrics which are being used in various functions of HRM. Rapid digital
transformation has increased the requirement of HR analytics solutions and services and this has
caused the world to grow fastest in HR analytics (Gurusinghe et al.,2019).

HR analytics add value to the functions of HR department and improve the effectiveness and
efficiency of every associated aspects of it.To add value in the organization analytics is a
powerful tool that impacts HR practices and policies and improve HR functions. Analytics has
interaction with much discipline like computer, engineering, science etc. (Angrave et al.2016).

Human resource management has become one of the most critical functional fields in an
organization (Opatha and Uresha, 2020). Opatha (2009) defines HRM as the efficient and
effective utilization of human resources to achieve goals of an organization and the generic
purpose of HRM is to generate and retain appropriate and contented employees who give their
maximum contribution to achieve organizational objectives and goals. Human resources include
all types of employees who work for the organization. In present competitive business
environment human resource has become a strategic asset to the company as it is rare, valuable,
inimitable and non-substitutable.

Boudreau and Ramstad (2004) as in Levenson (2005) - HR Analytics is about statistics and
research design, but it goes beyond them, to include identifying and articulating meaningful
questions, gathering and using appropriate data from within and outside the HR function, setting
the appropriate standards for rigor and relevance, and enhancing the analytical competencies of
HR throughout the organization. According to M-J,Xavier (2011) an accurate understanding of
analytics as a decision –making method of analytics can be seen as a dynamic process with
passage of time and revolution in surrounding market factors and the ideas evolve and change
HR analytics also known as work force analytics is the predict future employee behavior and
events based on HR data (Deloitte ,2011)

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Using HR analytics to assess the impact of HR practices and regulations on an organization’s
performance is a powerful tool for HR to demonstrate its value in its workplace (lower , levenson
& Bordeu.2004)

Data analytics is the art of gathering data related to business from multiple sources for deeper
comprehension and judgment (Bagshavy, 2017)

According to masenya molefe (2013) companies have acknowledge that there is a talent scarcity
problem among HR experts and some have gone as far as to hire outside analysis to run stastical
model and transform HR data into visuals . to close the talent gap including HR analytics course
in any human resource management curriculum is vital .

According to matrice (2015) it is vital to iunderstand HR tactics and to relate them to data
analytics as well as to acquire significant information from HR experts through research and the
use of talent management tactics .

Data analytics include stastical and quantitative analysis, explanatory & predictive models and
fact based management. (Daven port & Harries, 2006).

According to Gustafson (2012) several forms of HR analytics have evolved through time
including talent analytics, talent intelligence and work force analytics.

Cross reff & scopus (2010) stressed that HR role must evolve to achieve maximum efficiency
and out dated systems must be removed because employees are the companies most valuable
commodity and require special attention . Alice snell (2007) emphasized the places where HR
can save money ,speeding up the recruiting process , reducing high turnover rate and avoiding
negative publicities are some of the ways that can help the management of HR’s burden .

From a distinct manpower handling a standardized HR analytics features anchor the entire derive
of human resources which not only adds a valued dimes ions but also fully transforms the
organization over all performance and development (Delgtte,2015) HR management combines
descriptive , visual and stastical analysis of data related to business .

It uses HR ,Finance and relevant external sources to establish business impact and facilitate
improved evidence based decisions (lower & Boudreu,2015).

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According to Amare Worku (2015) Human resource outcomes such as employee performance
and retention are the focus of most Ethiopian studies , and business are increasingly recognizing
human resources as a crucial asset as the economy changes.

Shiferaw Dibaba(2013) stated that human resource management policies aim to increase
employees awareness and competencies as well as the company’s core aspirations
Organizational development and growth is mostly dependant on the quality of the human
resource department on the quality of the human resource department . therefore changing and
up grading the way they function would help in elevating the country’s interest (Gebeyhu
Begashaw,2013.

Kiran et al (2018) - HR Analytics means providing a data driven framework for solving business
problems using existing information to drive new insights. It is about smart decision making,
delivered with the combination of software, hardware and methodologies that applies statistical
models to work related data, allowing business leaders to optimize human resource management.
Considering the above definitions, HR analytics can be defined “as the application of research
designs and advance statistical tools for evaluating HR data to find solutions or to make
sustainable decisions relating to HR issues based on evidences for the purpose of supporting in
achieving competitive advantage for the organization through resource based view.

2.3. HR Analytics
Kirtane (2015) - HR analytics is an integrated process that improves the individual and
organizational performance by assisting to improve the quality of people related decisions. HR
analytics mostly depends on statistical tools and analyses and requires high quality data, well-
chosen targets, talented analysts, leadership, as well as broad-based agreement that analytics is a
legitimate and helpful way to improve performance.

One of the founders of the analytics movement has said: "Unquestionably, analytics is going to
give HR a major makeover and analytics is the engine of business intelligence while it is a
prerequisite for sustainable performance of the organization” (Fred and Kinange, 2015).
Analytics has interactions with much disciplines like computer,engineering, science etc. (Lochab
et al., 2018). Analytics are three types i.e. descriptive analytics, predictive analytics and
prescriptive analytics (Fred and Kinange, 2015). Descriptive analytics applies simple statistical

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techniques like mean, median, variance, standard deviation etc. and describe what contained in
the data set (Fred and Kinange, 2015) and answer the questions of “what happened?” or “what is
happening?” (Jabir et al., 2019). Predictive analytics applies advanced statistical methods
(regressions analysis, correlation analysis, independent sample T test etc.) to identify predictive
variables and build predictive models to identify future trends, relationships, impacts, differences
etc.

According to Jabir et al. (2019), its major outcome is to answer the questions of “what will
happen?” or “why will it happen?”. Prescriptive analytics applies decision making science,
management science, and operations research methodologies to make best use of limited
resources (Fred and Kinange, 2015) while it answers the questions of “whatshould be done?” or
“why should it be done?” (Jabir et al., 2019).

Dooren, (2012) as in Lochab et al. (2018) - A methodology for understanding and evaluating the
causal relationship between HR practices and organizational performance outcomes (such as
customer satisfaction, sales or profit etc.), and for providing legitimate and reliable foundations
for human capital decisions for the purpose of influencing the business strategy and performance,
by applying statistical techniques and experimental approaches based on metrics of efficiency,
effectiveness and impact.

Jain and Nagar (2015) - A mixture of quantitative and qualitative data and information that
derives important insights which help to support in making decisions by the management. Vihari
and Rao (2013) as in Ben-Gal (2018) - The application of sophisticated data mining and business
analytics techniques to the field of HR.

Kapoor and Sherif (2012) - HR analytics means managing key HR related data and documents in
order to analyze the gathered data using business analytics models and disseminate the analyzed
results to decision makers for making appropriate decisions. Reddy and Lakshmikeerthi (2017) -
Evidence-based HR (EBHR) is a decision-making process combining critical thinking with the
use of the best available scientific evidences and business information. It uses data, analyses and
research to understand the connection between people management practices and business
outcomes, such as profitability, customer satisfaction and quality.

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Jabir et al. (2019) - HR analytics is about analyzing and understanding how and why things
happen, produces alerts about what the next best action is, and make interpretation about what
the best and the worst are that can happen based on the analyzed data.

2.4. types of HR analytics

2.4.1 Descriptive Analysis.

Descriptive analysis is the first type of HR Analytics (Fitz-enz, 2010) and this is used to
understand past behaviours and outcomes and also to help examine and describe the relationships
and patterns that exist between them (Ulrich & Dulebohn, 2015). At this level, it is more of cost
reduction and total process improvement (Fitz-enz & Mattox, 2014). It helps to answer the
question, “What happened?” The descriptive analysis involves the use of published reports,
dashboards/scorecards, data visualization and basic data mining (Fitz-enz & Mattox, 2014). Due
to the nature of the descriptive level analysis, it does not attach meanings to patterns observed.
This is more exploratory than predictive (Narula, 2015) and so HR Practitioners need to be
careful not to make predictions into the future with this data as this may be risky to the
organisation. This is because the main aim is to understand the present from the past

2.4.2 Predictive Analysis.

The second level or type of HR Analytics is predictive analysis. At this level of analysis, the
meaning is given to the data to make projections into the future. According to Fitz-enz (2009),
with practice, there is the likelihood that, future occurrences to some degree can be made through
the analysis of historical data. That is, the predictive analysis is more focused on probabilities
and potential impact (Fitz-enz & Mattox, 2014) and answers the question, “Why did it happen?”
According to Watson (2014), predictive analysis can be used to identify attributes that are
required to increase job performance and is able to screen suitable applicants for the job.
Simulation models can be used to evaluate job demand and supply using for example, “Java
Developers” and as work conditions change, the models are rerun to update both hiring and
retention plans (Narula, 2015). Some forms of predictive analysis are genetic algorithms, neural
networks, decision trees (Watson, 2014; Narula, 2015). According to Bersin (2013) as cited in
Narula 2015), only 4% of companies have been able to reach the level of performing predictive
analytics on their workforce

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2.4.3 Prescriptive Analysis.
The third and highest level of HR Analytics is prescriptive analysis. It focuses more on complex
data that is used to make improved decisions. This form of analysis examines data and is able to
answer the question “what should be done?” or “how can we make it happen?” The prescriptive
analysis enables organisations to make accurate predictions about their workforce such as a
possible employee resignation (Jensen-Eriksen, 2016). Mathematical programming and
simulation are some examples of prescriptive analysis. It is worth emphasizing that, prescriptive
analytics go beyond predictions as it uses high-quality statistics to make an influence on
businesses.

2.5 Importance of HR analytics

Human capital is not just about measuring skills or even contribution in the form of productivity;
it is also about measuring how successfully that knowledge and contribution translates into
organizational value Baron, A. (2011).

Analytics transforms HR data and measures into rigorous and relevant insights. The more
abundant HR data becomes, the more critical is analytical capability. Analytics ensures that
insights from HR data provide legitimate and reliable foundations for human capital decisions.
Thus, analytics is an essential addition to deep and rigorous logic for an effective measurement
system. As it turns out, many analytical principles and competencies already exist Boudreau, J.
W. (2006).

The purpose of HR analytics is to improve individual and organizational performance. So it

needs to be done. So what about the role of ROI analysis as a component of HR analytics? Many
practitioners view ROI as the Holy Grail of HR measurement. These people are often focused on
using analytics as a method of proving their worth Bassi, L. (2011). The key reason to conduct
effective HR analytics is to conclusively show your business impact within the organization and
actual cause-effect relationship among what you do and business outcomes and building a
strategy based on that information, will allow you to make those terms a reality Mondore, S.,
Douthitt, S., & Carson, M. (2011)

HR Analytical practices are contributing to build a sustainable organization as these practices are
balancing social,environmental and economic factors for short and long term perspectives

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(Kirtane, 2015). As per Ben-Gal (2018) HR analytics has several goals :1) to gather and maintain
data in a meaningful way for predicting short and long-term trends in the supply and demands of
employees in different industries and occupations; 2) to help global organizationsto make
decisions relating to optimal acquisition; 3) to develop and retain of human capital; 4) to provide
an organization with insights for effectively managing employees in order to achieve business
goals quickly and efficiently; and 5) to positively influence the successful implementation of an
organization’s strategies. In addition, the major purpose of HR analytics is to enhance the
organizational sustainability by making intelligent HR related decisions after the analysis of
gathered data in a meaningful way using analytical techniques in order to enhance organizational
performance.

According to Kiran et al. (2018); Bhattacharyya (2017); Kirtane (2015); Reena et al.

(2019); Reddy and Lakshmikeerthi (2017); Fred and Kinange (2015), benefits of HR analytics
are :1) Improves the performance of the employees; 2) Improves ROI (Return on Investment) of
human resources; 3) Provides opportunity to assess how employees contribute to the
organization and assesses the extent to which they can meet their career expectations; 4)
Forecasts workforce requirements and determines how to fill the vacant positions;5) Links
workforce utilization to strategic and financial goals to improve business performance; 6)
Forecasts future HR trends and patterns in terms of various aspects (Eg: turnover, absenteeism
etc.);7) Identifies the factors that lead to greater employee satisfaction and productivity; 8)
Discovers the underlying reasons for employee attrition and identifies high-value employees at
risk of leaving;9) Establishes effective training and development initiatives…etc.

2.5.1 Data Analytics in Decision Making

Abdul Quddus Mohammed (2019) remarked that Data Analytics aid in predictive decision
making,through the statistical evidence and technological interventions could examined
especially in the IT Infrastructure for data efficiency in terms of data storage.It involves the
process of cluster analysis,risk analysis and forecasting.

15
2.5.2 Data Analytics in Conceptual Boundaries and Value Propositions
Aizhan Tursunbayeva(2018) observed that people analytics consists of extension in mapping the
use through online, doing applicable academic research, purviewing commercial people analytics
tools and services,an outlook on online training courses.

2.5.3 Predictive Analytics for Human Resource in Organisations

Sujeet N.Mishra (2016) reviewed that Human Resource Predictive Analytics (HRPA) requires
three factors such as, HR Metrics, predictive model and predictive score. It helps in predicting
about the employee performance through the data obtained from the HR data analytics.

2.5.4 HR Analytics as an Effective Evidence based HRM tool

Raghunatha Reddy (2017) described that evidence based HR Practices are mandatory because
using data is more accurate than just relying on the instincts. It is effective in predicting customer
satisfaction and also better decision making

2.6. Latest Development in Data Analytics

Seenu Telu(2019) added that Data Analytics includes governing critical end result, establish
cross functional terms, estimate development standards, Interpret data set up program and
accomplish,compute and modify or re-modify.

2.7 Human resource Analytics as a Game Changer for HR Professionals

Rathi Meena(2019) explored that Human resourse Analytics plays a significant role in the HR
Systems and also helps in the recruitment process. The Data Analytics in the recruitment
comprises of efficient sourcing, targeted hiring with charge of procedure.

2.8 Employee Churn in Predictive Analytics

Ardianiswari(2019) reviewed that perception of predictive analytics plays a key role in the
employee churn and there is a greater significance in latest progress of the recent trends of
predictive analytics in employee churn and better usage of Data Analytics in decision making
process such that it helps in the contribution for the benefit of an employee.

Krista Jensen_Eriksen(2015) researched that HR analytics role by analysing the blogs of HR

Professionals to determine the perception of HR Analytics by HR professionals and how it

16
affects the decision making and also the correlation between HR Analytics and data driven
HRM.

2.9 Technologies in HR data Analytics

The best utilization of the advancement in technology is making Human resource management
more efficient, from hiring the right talent to retaining the best ones and this has made Human
resource management more evidence-based with the power to make accurate decisions.
Technologies available in the HR functions within organisation is expanding and continues to
advance in sophistication (Davenport, et al., 2010).

Maitri(2015) conveyed that it is necessary to understand the HR functions and then relate with
the Data Analytics and also obtain valuable insights from the HR Professionals through research
by adopting strategy for employer branding. The HR Tools and training practiced by various
companies needs to be studied

2.9.1 R Programming.
R programming which is an open source data tool is a free software widely used by data miners
and among statisticians for statistical computation and graphics. Open source data tools or
software is defined as software whose development and source code are available for public use
where nobody can exploit it (Laurent, 2004). In other words, open source data tools are software
applications that are generally free and openly available. Open source data tools have become
synonymous to free software in the minds of many (Walters, 2007). R programming software is
used to develop statistical software for data analysis (Praveena & Bharathi, 2017).

2.9.2 Microsoft Excel

Excel has been described by literature as one of the most widely used spreadsheets within the
computing environment with diverse statistical functions for analysis (Laverty, Miket, & Kelly,
2002). This data visualization tool also has powerful graphical capabilities which gives a deeper
understanding to data (Laverty, et al., 2002). Creating visual simulations is made easier with
Excel as well as computations (Orvis, 1996) not forgetting data forecasting and results presented
in an attractive manner (Rusu & Rusu, 1998). Although Excel is integrated into Microsoft Office
Suite, it can be used independently (Rusu & Rusu, 1998). Excel is able to provide its own

17
programming language and visual basic applications for visual programming (Rusu & Rusus,
1998). This makes it easier to generate real-time reports at very cost effective prices.

2.9.3 Microsoft Power BI.

Microsoft Power BI is one of the analytical tools integrated into the Microsoft Business
Intelligence Suite (Microsoft, 2016). Power BI has been very instrumental in data visualization
(Petrovski, 2016). Power BI has the capability of uploading excel workbooks into the cloud
which enables recipients to share reports at a go without being limited by distance (Aspin, 2014).
Stirrup (2016) is of the view that, inaccurate data representation in the form of dashboards,
makes it difficult for people to make informed decisions. In view of that, Power BI plays a
critical role in providing a clear picture of what a particular organisational data means and this
helps in making informed decisions (Petrovski, 2016). Following the argument of Borup (2015),
a good data visualization must quickly expose the meaning of a data set particularly the trends,
patterns, and status at a glance which might take time using traditional methods.

2.10 Human Resource Predictive Analytics in Organisations

Sujeet N.Mishra (2016) reviewed that Human Resource Predictive Analytics (HRPA) requires
three factors such as : HR Metrics, predictive model and predictive score. It helps in predicting
about the employee performance through the data obtained from the HR analytics.

2.11. Human Resource Analytics in HR Practices

Aranganathan(2018) explored that HR Analytics play a significant role in the HR practicessuch
as Recruitment and Talent acquisition, Performance Management, Workforce planning,
Compensation Management, Training and Development, Employee Turnover and Retention.

2.12. A new model for HR analytics

HR analytics applies statistical models to get insights into employee data and this makes
managers possible to predict employee behavioral patterns like attrition rates, training costs, and
employee contribution (Mohammed, 2019). Mohammed (2019) explains, “A typical HR
Analytics System collects employee data from HRIS (Human Resources Information System),
business performance records, mobile applications and social media merges into a data
warehouse, applies big data, statistical analysis and data mining techniques to provide
understanding of hidden data patterns, relations, probabilities and forecasting. A Data
18
Warehousing System deals with the data collection, analysis, and transformation and storing data
on various databases”.

2.13 . Challenges for HR analytics

As the attributes of human resources are very difficult to measure and quantify understanding
and predicting the human behavior is a big challenge that every organization has to face today
(Momin and Mishra, 2016). Due to the fact that human aspects are hard to measure HR managers
face various challenges. To face these challenges HR analytics is introduced. However,
performance of HR analytics also not easy as HR professionals have to face challenges when
implementing HR analytics. According to Malla (2018) HR analytics challenges are:

Curating data: It is vital to organize and integrate data, collected from many operations and
departments within the organization in order to implement HR analytics. Further, HR
professionals need to properly present the data in a way that they can be evaluated meaningfully
and these collected data should be remained carefully for future purposes.

Lack of data analytics knowledge and skills: Even though HR analytics has become a major
source for competitive advantage, the truth is that the analytics abilities of most HR professionals
are limited and not enough to carry out the process of HR analytics. Thus, organization needs to
invest on training of suitable managers to perform HR analytics in order to make decisions relate
to human resources efficiently and effectively.

Training on statistical methods ishighly important to convert data into meaningful insights.
Without analytical capabilities HR professionals and business leaders cannot take accurate
conclusions (Reddy and Lakshmikeerthi, 2017).

Privacy and compliance: HR professionals must consider privacy when collecting data from
employees. Collecting personal details of employees may sometimes lead the company to have
legal troubles.

Lack of support from the top management: Support from senior executives is also essential to
successfully carry out the HR analytics within the organization. If they do continuously
encourage a data driven culture within the organization, it becomes a source of motivation for

19
other managers to engage in evidence based processes and they try to make more accurate people
related decisions based on data experiments.

Further, Kiran et al (2018); Dooren, (2012) as in Lochab et al. (2018); Jabir et al. (2019) have
identified major impediments to the application of HR analytics: Translating business issues into
data analysis questions is quite hard,Presenting results back to the business in a clear, compelling
way using HR dashboards,Inconsistent and inaccessibility of data, Data quality issues,Lack of
standard/generic methodologies to analyze HR data,Funding issues,Wrong or not targeting the
right analytical opportunities,Improper timing,Lack of experienced people that can understand
and deploy the analytical systems,Models are complex to deploy and take much time.

2.14. Perception of employee towards data analytics in HR management

Over the last decade, the strategic human resource management field has paid increasing
attention to employee perceptions data analytics of human resource (HR) practices (Beijer,
Peccie, Van Veldhoven, & Paauwe, in press; Hewett, Shantz, Mundy, & Alfes, 2018; Ostroff &
Bowen, 2016; Sanders, Shipton, & Gomes, 2014). Human resource management (HRM) scholars
largely agree that employee perceptions of HR practices play a key role in influencing the
effectiveness of these practices (e.g. Den Hartog, Boon, Verburg, & Croon, 2013; Jensen, Patel,
& Messersmith, 2013; Jiang, Hu, Liu, & Lepak, 2017).

At the individual level, employee perceptions of data analytic HR practices have been shown to
mediate and moderate relationships between an organization’s HR practices and employees’
attitudes and behaviors (e.g. Aryee, Walumbwa, Seidu, & Otaye, 2012; Liao, Toya, Lepak, &
Hong, 2009). At the organizational level, employee perceptions of HR practices have been
identified as antecedents of unit-level performance (Bowen & Ostroff, 2004).

Whether by design or by accident, HR practices deliver certain messages to employees (Bowen

& Ostroff, 2004). Messages can be embedded in HR content (the ‘what’) or in the way HR
practices are implemented (the ‘how’). In this line of reasoning, employee daata analytics HR
perceptions encapsulate the messages employees, either individually or collectively, receive from
their employers by observing or experiencing HR practices. Employees may disagree with their
employers regarding the types of HR practices implemented and the reason(s) behind the
implementation of these practices. Strategic HRM studies tend to assume that top-level managers

20
are aware of implemented HR practices. Therefore, they measure firm-level HR, often based on
subjective responses from a single senior manager who is deemed to have more knowledge of
HR practices than others in the organization including employees (Gerhart, Wright, Mahan, &
Snell, 2000; Huselid & Becker, 2000). The employee data analytics HR perceptions literature
explicitly acknowledges the potential disparity between HR practices perceived by managers and
those perceived by employees, highlighting the importance of employees’ subjective experience
of HR as a driver of workplace outcomes.

The potential divergence among employees in their perceptions of HR practices ,Employees may
have idiosyncratic observations of the data analytics in HR practices available in their
organization because HR practices are designed differently across different groups of employees
within an organization (Liao et al., 2009), or employees may consider certain HR practices as
irrelevant to themselves, and so do not make themselves aware of their potential benefits or
costs. Even within the same work group, individuals may develop varied understandings about
which HR practices are available to them and why such practices were introduced by the
organization. This may be attributable to individual differences, such as personalities or
experiences in prior jobs (Wright & Nishii, 2013), or social influences from colleagues (Jiang et
al., 2017).

2.15. Chapter summey

Information technology has proved its ability to fuelling a country’s economy for competitive
advantage from the discussions so far. Therefore, investing resources in HR technology is
essential to better manage the workforce. The literature on analytics has revealed that
implementing analytics in firms has great benefits especially in decision-making with the aim to
add value to the business. Gaining an understanding of how these innovations work is essential
in realizing its relative advantage. Despite the great benefits of using HR analytics, it has
challenges such as lack of management support and right analytical skills to run analysis as key
determinants making it difficult to realize the full potential of analytics by HR professionals.
Building the right capabilities is essential in driving the adoption and implementation decision
not forgetting the management support which serves as a catalyst to HR analytics
implementation.

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 CHAPTER THREE : METHODOLOGY

3.1 chapter over view

This section explains the research in term of the resources and procedures that will be used .it
primarily concentrates on the study site, source of the data, data collection and analysis method.

3.2 study site

The research will take place at Nile insurance company in Addis Ababa, Ethiopia the chosen
organization is quite broad in terms of size geography and staffing requirement making it eligible
to be research site so that deep and sufficient information can be acquired for the analysis apart
from that. it has a high level of acceptance of new technologies and ideas. thus conducting the
research will be un complicated and straight forward.

I believe Nile insurance company is a wonder full place to begin the research and disseminate
the findings to other Ethiopian companies, its need for improved human resource makes it an
excellent place to try out a new technology like HR analytics.

3.3 sources of data

The current investigation will include both primary and secondary data structured and open
ended question surveys will be used to obtain primary data. I create relevant research questions
geared at delivering information on the topic which I will use to interview people with practical
knowledge of human resource management to gain insights from their experiences.

I will be analyzing previous literature that focuses on data analytics and its application in HR in
addition to essential company records for secondary data. I well try to look at the differences,
similarities, relationships, perspectives and pre conditions about HRA from various HR
practitioners during the reviewing process.

3.4 sampling method

The sampling method that is going to be used for this research is non-probability sampling since
the research participant are expected to have a lot of expertise with the issue to contribute to the
body of knowledge. I will be seeking for someone who has worked in HR and has a strong
understanding of the department’s dynamics.

22
The study’s target population is the company’s HR personnel the sample size will be determined
by the no of HR practitioners in the company.

3.5. Sample Size and Sampling Techniques

It is obvious that because of different constraints and difficulty to manage the data in depth,
studying each unit of the total population is very difficult. Hence, it is important to draw a
sample from which the research can be inferred to the total population that should be a
representative sample size. A representative sample is a sample one which reflects the study
population accurately. The sample of Nile insurance company would be determined by using
convenience or accidental sampling method. The major reason behind to select such type of non-
probability sampling is based on the accessibility or convenience to the researcher. The sample
size is selected from the total population selcted from the branch. Out of 51 employees in nile
insurance company, Bole branch 25 employees are selected for the study.

3.6. Data collecting method

Quantitative methods will be used to carry out the collection of the required data. Utilizing both
strategies ensures that one types constraint is offset by the other’s ability this will help in better
reflection of the data by combining several modes of knowing

As of now no theories have been made relating to the application of human resource analytics in
Ethiopia. therefore the usage of both methods will be beneficial to uncover the basic
characteristic of the research topic. Observations questionnaires from the target respondent are
the techniques that will be used to gather the required data

3.7. Data analysis method

In research, the researcher gathers various forms of data and analyzes them in order to give
pertinent details on the research phenomena. the process through which researchers evaluate
catagorge , sort and test data to develop empirically grounded theme is known as data analysis .
it is more than just synthesizing data ,data analysis necessitates a through search for patterns.
Descriptive data analysis approach will be used to analyze the gathered data . I will aid in the
evaluation of quantitative data that is obtained from different methods such as questionnaire,
surveys . it will synthesize and summarize the data’s content in relation to the research questions.
The data are analtsed by tabular methods using percentage and frequecy of respondent responces.

23
 CHAPTER FOUR: ANALYSIS AND DISCUSSION

4.0. Introduction
This chapter concerned with the characteristics of sample size, the presentation as well as
analysis of data gathered through questionnaire. The data collected through questionnaire was to
be analysed and presented in the table form and it seems appropriate to interpret each data which
are presented in the table, figure and percentage.

4.1. Background of Respondents

Personal Indpendent variable of personal Respondent
profile profile Frequency Percentage

Gender Male 14 56%

Feale 11 44%
Total 25 100%
Age group Under 25 year 3 12%
26-35 year 18 72%
36-45 year 3 12%
Above 45 year 1 4%
Total 25 100%
Education 12 complete 0 0%
Diploma 3 12%
level
First degree 10 40%
Second degree 8 32%
PhD 4 16%
Total 25 100%
Source questionnaire

Table 4.1. demonstrates gender proportion of the employees who fill the questionnaires. 44% of
them were females and the remaining 56% were male employees. The above data shows that the
number of male employees is greater than that of female employees, But the difference is slight
so the researcher can say the sample of the population represented better with balanced sexual
make up.

Age of the employees and 72% of the employee accounts for the age between 25 and 35, 12%
are between 36-45 , 12% are under the age of 25 and the rest 4% of the employee are between

24
above the age of 46. As its noticed most of the respondents are are in the age of 25-35 years,
Even though roughly thinking older people know better, considering most of the nile insurance
company employees are young employees the sample represented the branch well. So with this
respect it can be said the quality of data collected is satisfactory.

Educational background of Nile insurance at bole branch employees; employees who hold their
first degree accounts for 40%, the remaining employees who weight 12% are diploma holder and
employees who above BA degree are 48%(32% second degree and 16% PhD). Hence 40% of the
employees have BA degree and 48% above BA degree the data collected can be said best with
regard to this bench mark.

Table 4.2. position of respondent

No Question Option Respondent

Frequency Percent
1 What is your current Generalist 3 12%
position? Specialist 4 16%
HRIS 9 36%
Manager 3 12%
Director 2 8%
Other , please specify 4 16%
Total 25 100%
Source questionnaire

As showen above table 4.2. most of the respondents are working on HRIS department 9(36%),
4(16%) work as specialist and 4(16%) of the respondent are works on beyond the above
specification. This shows the nile insurance company have employees in all department.

Table 4.3. Expriance of respondent

No Question Option Respondent

Frequency Percent
1 How long have you worked Less than one year 2 8%
for your current employer? 1-5 year 10 40%
6-10 years 9 36%
11-15 year 3 12%
Above 16 years 1 4%
Total 25 100%

25
Source questionnaire

As described from above table 4.3. the numbers of employes who are worked long in the
company are in the age range of 1-5, which is 10(40%) and next in the age range of 6-10 year
expriance 9(36%). This shows nile insurance company have a young and low level of
exprianced employees.

4.2. Analysis of responses to the Questionnaire.

Employees in Nile insurance company at bole were selected and questionnaire was distributed
for the sampling technique used to select the population was non probability sampling the
questionnaire was aimed at assessing the peception and implementation of data analyt in HR
management. The employees had been given both open-ended and close ended questions. Most
of the close ended questions have to be answered by the employees. The results are in directed in
the following table.

Table 4.4.

no Question Option Respondents

Frequency Percent
1 Do you have HR certificate? Yes 9 36%
No 16 64%
Total 25 100%
Source questionnaire

As showen in the above table 4.3. the employees that are certified are 9(36%) and who are not
got a certeficate are 16(64%). This shows that most of the nile insurance company employees
are not certified.

Table 4.5. allocation of resource

no Question Option Respondents

Frequency Percent
1 My organization allots a large Yes 15 60%
No 10 40%
amount of resource to HR
Total 25 100%
Source questionnaire

26
As showen from the table 4.5. most of the respondent are say yes 15(60%) and 10(40%) of the
respondent are say no for the organization allotes a lange amount of resource to HR.

Table 4.6.

no Question Option Respondents

Frequency Percent
1 My organization uses Yes 21 84%
No 4 16%
statistical methodology to
carry out HR activities.
Total 25 100%
Source questionnaire

As described table 4.6. 21(84%) of the respondent are say yes and 16% are no response. This
shows the majority of the respondent agree for the organization statistical methodology to carry
out HR activities.

Table 4.7.

no Questions Option Respondent

Frequency Percent (%)

1 I received HR training Yes 23 92%

No 2 8%
Total 25 100%
2 Do your organization Yes 24 96%
No 1 4%
currently use HR analytics?
Total 25 100%
No 0 0%
Total 25 100%
3 I think HR analytics is Yes 25 100%
No 0 0%
easy to use.
Total 25 100%
Source questionnaire

As described from table 4.7. 92% of the respondent received HR training and 8% of the
respondent are not taking a training. This shows most of the respondent of the nile insurance
company are getting a training. For item number 2, 96% of the respondent are currently use HR

27
 analytics . for item number 3, 100% of the respondent agree with HR analytics is easy to use.
This shows the company data analytics of HR is easy for the employees.

Table 4.8.

Responses
Strongly Agree Disagree Strongly Total
agree disagree
No Item
No. % No % No. % No. % No. %
1 My organization uses the 1 4 2 8 15 60 7 28 25 100%
same system / plat form for
all HR interactions
2 I can usually handle 15 60 10 40 0 0 0 0 25 100%
whatever comes my way
3 I enjoy working with 10 40 12 48 3 12 0 0 25 100%
mathematical and/or
statistical analysis
4 Our HR department is 16 64 9 36 0 0 0 0 25 100%
creative in finding new ways
to attract top talent among
diverse groups.
5 My HR training includes the 10 40 12 48 3 12 0 0 25 100%
use of statistics
6 My HR training has prepared 8 32 16 64 1 4 0 0 25 100%
me to use analytics for better
decision making
7 The use of HR analytics is 1 4 3 12 12 44 8 32 25 100%
not very visible in my
organization
8 My HR training has prepared 12 48 9 36 4 16 0 0 25 100%
me to understand how to
analyze data.
9 I could complete a job or 13 52 10 40 2 4 0 0 25 100%
task using technology if I

28
 have training material readily
available.
10 I am interested in using HR 11 44 10 40 3 6 1 4 25 100%
analytics
Source questionnaire

As described by table 4.8. above, item number 1, shows that 88% of the respondent(60% agree
and 28% strongly disagree) with the organization uses the same system / plat form for all HR
interactions. This shows the nile insurance company have different system/plat form for different
HR interactions. For item number 2, 25(100%) of the respondent(60% strongly agree and 40%
agree) on the employees able to handle whatever comes my way. For item number 3, 88% of the
respondent(40% strongly agree and 48% agree) with “I enjoy working with mathematical and/or
statistical analysis”.

For item number 4, 16(64%) of the respondent strongly agree and 9(36%) of the respondent are
agree with the HR department of the is creative in finding new ways to attract top talent among
diverse groups. 88% of the respondent also agree and strongly agree on HR training includes the
use of statistics. For item number 6, 96%(32% strongly agree and 64% agree) on the HR training
has prepared me to use analytics for better decision making. 76% of the respondent in item 7, are
agree and strongly disagree with The use of HR analytics is not very visible in my organization.
For item 8, 72% of the respondent agree for HR training has prepared me to understand how to
analyze data. And for item 10, 84%(44% strongly agree and 40% agree) on the employees
interested in using HR analytics. This shows most of the respondent refelcts that nile insurance
company in bole branch employees are intersted in using HR analytics.

4.3. Limitation of the study

On conducting this research, the researcher faced the following limitations

1. Covid-19 made the undertaking of the research by making the respondents less available
and was not volunteering.
2. The sample population the researcher took wasn’t cooperative some of them were
careless and not even willing to fill the questionnaire.
3. The weather was very hard to easily conduct the research because it was raining and cold.

29
CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.0. Introduction
This chapter presented a summary of the findings of the study which were discussed
extensively in the previous chapter. This is then followed by the conclusions drawn from the
study influenced mainly by the objectives and outcomes of the study. The final chapter ends with
key recommendations that were drawn from the study to inform research, policy,and practice.

5.1. Summary of Findings

The purpose of this research study was to investigate the of the perception and
implementation of data analytics in human resource management practice. The objectives were;

 To describe how HR analytics is conducted in organisations.

 To identify the tools and methodologies used in HR analytics.
 To identify the benefits of HR analytics among firms.
 To determine the challenges associated with the use of HR analytics among firms.

The study used twenty five respondents; 14 male and 11 female. Respondent’s demographic
characteristics indicated that about (88%) of the respondents are above BA degree holders. The
demographics also showed that 88% of the respondents were working within the HR
department with years of working experience ranging from one to sixteen years.

30
5.2. Conclusions of the Study
The enormous benefits associated with HR analytics has increased its use to gain insights into
employee data to make strategic decisions for organisational effectiveness (Lee & Brower,
2006). This has made HR analytics an indispensable tool for HR professionals and managers to
add value to businesses. In the end, it was revealed that HR analytics has contributed
significant positive contributions in the areas of employee acquisition, increased performance
and employee retention. Again, the study revealed the various tools and methodologies
available to run effective analytics for the HR function and some shortfalls that cripple the full
implementation and use of analytics in organisations.

5.3. Recommendations
From the findings of this study, the researcher makes the following recommendations towards
future research, policy, and practice;

 The researcher through this study makes recommendations to HR professional

institutions such as the Nile insurance company to begin a search into the trends in the
market and places where HR professionals or practitioners can add value through the
adoption of HR analytics and begin training HR managers through specialized courses
in analytics to become specialized experts.
 The data shows that; The use of HR analytics is not very visible in the organization. The
researcher recommend that, the company exrecise open or visible data analyte in HR
management process at the company.

5.3.1. Recommendation for Future Studies.

The current study has laid the foundation for further empirical research to be conducted on the
implications of HR analytics in human resource management practice within businesses in the
Ethiopian context. Future studies can consider a comparative study between public and private
organisations that has adopted HR analytics using the quantitative and quelitative approach.
Also, the study focused on all the various HR activities as a composite one and HR analytics’
influence on them. With this, future studies can examine the implications of HR analytics
focusing on the individual processes to evaluate its effect on the bottom line and business
performance.

31
Furthermore, future studies can consider testing the findings of through a longitudinal approach
to explore the meanings and values associated with HR analytics and HR practice. This will also
afford the researcher the opportunity to increase the scope of the study to include more
respondents to elicit their responses on the subject matter.

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 Bassi, L. (2011). Raging Debates in HR analytics. People and Strategy, 34(2), 14 – 18.
 Bassi, L., Carpenter, R., & McMurrer, D. (2012). HR Analytics Handbook. Amsterdam:
Reed Business.
 Becker, B. E., Ulrich, D., & Huselid, M. A. (2001). The HR scorecard: Linking people,
Strategy and performance (1sted.).
 Boston, MA: Harvard Business Review Press.
 Berg, B. L. (2007). Qualitative research methods for the social sciences. London:
Pearson. Bersin, J. (2013). Big data in analytics: the world of haves and haves nots.
Retrieved from https://www.humanresourcesblog.in.
 Bersin, J. (2015a). The geeks arrive in HR: People analytics is here. Forbes Magazine.

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APPEDEX
QUESTIONNAIRE

Addis Ababa University, School of Commerce

Perception of HR analytics survey questionnaire

Dear participants, I would like to invite you to complete a short survey about HR analytics
perception and implementation.

It will approximately take 10 minutes to complete the questionnaire.

Your participation in this survey is completely voluntary. There are no forseeable risks
associated with this project. However, if you feel uncomfortable answering any question you can
with draw from the survey at any point. Your survey questions will be strictly confidential and
data from this research will be reported only in aggregate.

Direction: - please read each question carefully. Answer the questions by filling in the
appropriate box(es) that represents your response(s).

1. Please indicate your gender

 Female
 Male

2. In to which catagory does your current age fall?

 18-24
 25-30

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 31-35
 36-40
 41-45
 46-50
 51-55
 56-60
 60-65
 Over 65

3. What is the highest level of school you have completed or the highest degree you achieved?
 High school diploma
 Vocational training
 Some college but no degree
 Associate degree
 Bachelor degree
 Doctorate
 Masters in HR
 Others , please specify

4. Do you have HR certificate?

 Yes
 No
5. What is your current position?
 Generalist
 Specialist
 HRIS
 Manager
 Director
 Other , please specify

6. What is the functional area of your current position?

 Training and development
 Compensation and benefit
 Employee relation
 Management
 Other , please specify

7. How long have you worked for your current employer?

 Less than one year

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  1-5 years
 6-10 years
 11-15 years
 16 or more years

8. How long have you worked in the field of human resource management? (enter the number of
years in the box)

9. The organization has resources available for me to use at work (check all that apply )
 Excel
 Stand alone internally customized HR systems
 A third party HRIS
 If a third party vendor please specify

10. Approximately how many people does your organization employe?

 Fewer than 100
 100-499
 500-999
 1000 or more
11. Please indicate which data are collected by HR department in your organization.(check all
that apply)
 Work force statistical (example gender, age, absenteeism, job type
 Measure of people’s skills or value(example index of key qualities like experience
,knowledge and skill)
 Financial ratios relating to people and productivity (e.g. sales/head or revenues-cost)
 Measures of efficiency and effectiveness of the HR function (e.g. cost ratios, rate of
participation , succession planning and training )
12. My organization allots a large amount of resource to HR
 Yes
 No
13. My organization uses the same system / plat form for all HR interactions
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree

14. My organization uses statistical methodology to carry out HR activities.

 Yes
 No
15. I can usually handle whatever comes my way
 Strongly disagree
 Disagree
 Neutral

36
  Agree
 Strongly agree
16. I enjoy working with mathematical and/or statistical analysis
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
17. Interpreting statistical data is easy
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
18. I received HR training
 Yes
 No
19. My HR training includes the use of statistics
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
20. My HR training has prepared me to use analytics for better decision making
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
21. My HR training has prepared me to understand how to analyze data.
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
22. My HR training has prepared me to interpret the output / result of data analysis
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
23. I could complete a job or task using technology if I have training material readily available.
 Strongly disagree
 Disagree
 Neutral
 Agree

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  Strongly agree
24. Do your organization currently use HR analytics?
 Yes
 No

25. Do you currently use analytics in general?

 yes
 No
26. I think HR analytics is easy to use
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
27. The use of HR analytics is not very visible in my organization
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
28. I am interested in using HR analytics
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
29. It would be easy for me to become skillful at using HR analytics
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
30. I have full array of HR analytics tools available at work
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
31. My organization’s database has all the data I need to use HR analytics software..
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
32. I could complete a job or task using HR analytics or any technology without any help
 Strongly disagree
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  Disagree
 Neutral
 Agree
 Strongly agree

33. I could complete a job or task using HR technology if I had the “built in HR analytics help”
function for assistance.
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
34. It is unlikely I would be forced to try or use HR analytics to keep my job.
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
35. If I were to use HR analytics, it would have a negative impact on my organization
commitment
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree

36. If I were mandated to use HR analytics it would have a negative impact on my job
performance
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
37. If I were required to use HR analytics it would have a significant positive impact on my time
management.
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree
38. If I were mandated to use HR analytics it would have a positive impact on my job
satisfaction.
 Strongly disagree
 Disagree
 Neutral

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  Agree
 Strongly agree
39. HR analytics would make my HR decision reliable.
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree

40. HR analytics would improve employer - employee relations.

 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree

Thank you for your participation.

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