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Transformative Impact of Exponential Technologies For Implementation of HR Analytics in India It Sector Bikrantkesari
Transformative Impact of Exponential Technologies For Implementation of HR Analytics in India It Sector Bikrantkesari
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Abstract
Exponential technologies are transforming industries, including potential changes to HR practices. As data-
driven decision-making gains prominence, integrating HR analytics becomes crucial for enhancing
workforce management and strategic planning. This research paper focuses on the impact of exponential
technologies for implementation of HR analytics. In this study data collected from 360 HR managers in
India's IT sector. The model's validity and reliability were assessed using Smartpls 4.0. The results showed
that exponential technologies such as artificial intelligence, big data, chatbots, machine learning, neural
fuzzy networks, and social media networks have a significant relationship with HR analytics. It then focused
on the Indian IT sector, which is a dynamic and technology-driven economic growth that relies mainly on
the utilization of data-driven insights that enable HR experts to make knowledgeable decisions that align
with business objectives and employee needs, making it a practical framework for investigating the
synergies between HR analytics and exponential technologies.
Keywords: Human Resource Analytics (HRA), Exponential technologies, Artificial intelligence (AI),
Chatbots, Social Media Networks (SMN).
INTRODUCTION
The contemporary business landscape is amid a technological revolution driven by
exponential advancements in various domains of technology (Shet et al., 2021). This
transformative era was characterized by the rapid integration of artificial intelligence (AI)
(Margherita, 2022; Radonjić et al., 2022), big data (BD) (Henao-García et al., 2021;
Muhammad et al., 2022; Shah et al., 2017), machine learning (ML)(Xie, 2022), and other
cutting-edge technologies into Organizational processes. These exponential technologies
fundamentally reshaped organizations and promoted reevaluating established practices
across various domains. Among these domains, human resource (HR) management was
witnessing a paradigm shift, where the fusion of data-driven insights and innovation
technologies was shaping the way organizations approach workforce management,
strategic planning, and overall organization success (Margherita, 2022; Shet et al., 2021).
As organizations continue to grapple with challenges and opportunities presented by this
technological revolution, the concept of HR analytics has developed as a critical driver of
informed decision-making (Dhankhar & Singh, 2022). HR analytics leverages information
to gain deeper insights into employee performance, engagement, and overall well-being
(Coron, 2021). By harnessing the power of data, organizations can refine their talent
acquisition strategies, enhance employee retention (Arora et al., 2022a), improve
seventh section captures several features, such as the limitations, implications relevant
to HR and IT managers, and implications for policymakers and prospective paths for
future research—finally, the last section conclusions, followed by appendix A,
acknowledgement, and references.
LITERATURE REVIEW
HR Analytics
HR Analytics is a fast-evolving field that uses data analytics and technology to inform
human resource management decision-making (Margherita, 2022; Shet et al., 2021).
HRA has attracted substantial attention as organizations recognize the value of data-
driven methods to improve employee productivity, engagement, and overall
Organizational performance (Lochab et al., 2018). Organizations increasingly use
predictive analytics to forecast future workforce trends and outcomes (Gurusinghe et al.,
2021). This includes predicting employee turnover, identifying high-potential candidates,
and estimating future talent needs. According to Madhani (2023), HR analytics recognizes
HR data's value in training, compensation, benefits, and performance management. It
emphasizes individual contributions to Organizational value. In addition, HR data
demands privacy, local compliance, and guard against exposure.The study conducted six
thinking hats (Patre, 2016) as HR analytics, when used strategically, enhances workforce
decisions for superior business outcomes. However, its purpose and execution were
essential for the HR department. Furthermore, HR analytics involves the sophisticated
use of information technology to gather, manipulate, and report data and support people-
related decisions (Dahlbom et al., 2020). Finally, and crucially, HR Analytics was
concerned with connecting HR decisions to business and performance, which links HR
analytics to technologies. Incorporating technologies into HR analytics can transform
traditional HR practices, making them more data-driven, efficient, and allied with the
requirements of the modern workforce.
Artificial intelligence (AI)
AI's rapid rise in recruitment establishes it as a pivotal IT-based HRM tool, and research
proposes AI adoption as a strategic edge for upcoming talent, which assesses critical
factors that endorse AI in employee recruitment (Islam et al., 2022). The research on AI
in public sector human capital is crucial as its transformative HRM potential remains
uncertain but pivotal for ongoing sector enhancement (Johnson et al., 2022). In addition,
the study by Mehrotra & and Khanna (2022) assesses how AI transforms Organizational
functions, especially in recruitment. Thus, organizations develop internal AI tools that aid
recruitment sourcing, screening, and engagement. AI's influence on work, especially
staffing in HR. Despite AI advancement in staffing, its broader Organizational impact
remains to be seen (Nguyen & Park, 2022). While general AI is distant, specialized
sectors like healthcare and social media are advancing rapidly. AI use in employee
management lags due to HR complexity, data challenges, fairness and employee
reactions (Tambe et al., 2019). AI facilitates merging leading-edge research with digital
comprehension, enhancing insightful, scalable care (Yorks et al., 2020). Thus, HR
METHODOLOGY
Measurement Instrument
The foundation of this study rests upon a meticulous synthesis of existing literature,
shaping the constructs and quantitative measures employed. Before data collection, a
comprehensive pre-testing phase was undertaken to validate the questionnaire's
effectiveness. This involved 26 items distributed across six constructs, a critical step to
ensure both the clarity and comprehensibility of the questions for respondents. The
questionnaire, forming the backbone of this study, is divided into two distinct sections.
The initial segment captures demographic information encompassing gender, age, job
position, and experience of the respondents. The second part delves into inquiries
centered around the implementation of HR analytics. Careful consideration led to
selecting a refined set of 23 items after the pre-testing phase, during which the last three
items were omitted due to lack of response, confusion, or weak loadings. A pivotal aspect
of this study lies in the utilization of five-point Likert scales, ranging from 'strongly
disagree' (1) to 'strongly agree' (5), to capture responses to the questionnaire. These
responses are subsequently analyzed through structural equation modelling (SEM), a
robust statistical methodology. The analytical prowess of SmartPLS 4.0 software comes
to the fore, facilitating both the measurement and estimation of the structural model,
mainly when dealing with a single dependent variable like HR analytics. SmartPLS 4.0
software, a cornerstone of this study's analytical approach, undertakes a dual role. Firstly,
it uncovers the intricate interconnections between constructs, unravelling the associations
that underpin the study's framework. Secondly, it delineates the impact of each measuring
construct on implementation of HR analytics, showcasing its versatility in yielding insights.
Notably, this software employs a non-parametric bootstrap approach, a statistically robust
technique, to ascertain the significance of factor loadings and path coefficients. This
methodological rigor enhances the study's credibility and confidence in the reported
findings.
Sampling Design and Data Collection
The selection of the Information Technology (IT) sector in India as the focus for data
collection was a deliberate choice by the researcher to rigorously test the research
hypotheses embedded within the proposed study framework. The utilization of
convenience sampling facilitated the selection of respondents who are active HR
managers within the IT sector, ensuring that the responses garnered truly reflect the
insights and perspectives of professionals in the field. Initiating contact with a total of 477
HR managers marked the initial phase of data collection. Among these, a notable
participation of 390 HR managers was secured, who willingly dedicated their time to
complete the structured questionnaires. From this pool, a robust set of 360 questionnaires
emerged, characterized by their completeness without missing values, rendering them
suitable for the subsequent analysis utilizing structural equation modelling. In-depth
insights into the demographic composition of the respondents are meticulously outlined
in Table 1. The sample size of this study, which falls within the range of 150 to 400, as
recommended by Hair et al. (2011), aligns with scholarly guidelines. Furthermore, it is
noteworthy that Qureshi & and Mehraj (2022) advocate for a sample size of 200-500
respondents as adequate for management research. This aligns with the current study's
approach, affirming the adequacy of the selected sample size to yield meaningful insights.
Considering the dimensions of the questionnaire itself, as stipulated by Hair et al. (2011),
the quantity of 5 to 10 responders for each item is considered satisfactory. These
benchmarks substantiate the suitability of the sample size chosen for this study,
reiterating the robustness and reliability of the findings.
Table 1: Respondents' profile
Category Particular N Percentage
Male 171 47.5
Gender
Female 189 52.5
18 to 25 106 29.4
Age 26 to 35 232 64.4
Above 35 22 6.1
Junior Level 132 36.7
Job Position Middle Level 173 48.1
Senior Level 55 15.3
Below 3 68 18.9
3 to 7 125 34.7
Experience
8 to 12 125 34.7
More than 12 42 11.7
within each latent construct, Cronbach's coefficient was deployed. This coefficient
provided insights into the internal consistency of items and their associated constructs.
Additionally, each latent construct's Composite Reliability (CR) was assessed. A
minimum threshold of 0.70 was set for both Cronbach's alpha and CR values.
Remarkably, all latent constructs exhibited CR and Cronbach's alpha values ranging from
0.842 to 0.889 and 0.719 to 0.814, respectively, as highlighted in Table 2. The study's
findings affirm the separation, reliability, and construct validity of all the addressed
constructs within the measurement model. These constructs emerged as distinct entities,
underpinned by high reliability and construct validity, substantiating the rigour and
robustness of the study's methodology and outcomes.
Table 2: Outer loadings, Cronbach's alpha (CA), Composite reliability (CR),
Average Variance extracted (AVE)
Construct Item Outer loadings CA CR AVE
AI1 0.794
Artificial
AI2 0.876 0.772 0.868 0.687
Intelligence
AI3 0.814
BD2 0.788
BD3 0.754
Big Data 0.765 0.849 0.586
BD4 0.723
BD5 0.794
CB1 0.781
Chatbots CB3 0.795 0.719 0.842 0.64
CB4 0.824
HRA1 0.869
HR Analytics HRA2 0.816 0.814 0.889 0.727
HRA3 0.872
ML1 0.857
Machine
ML2 0.838 0.809 0.887 0.724
Learning
ML3 0.857
NFN1 0.844
Neural Fuzzy
NFN3 0.806 0.742 0.853 0.659
Networks
NFN4 0.785
SMN1 0.739
Social Media SMN2 0.861
0.813 0.878 0.644
Networks SMN3 0.867
SMN4 0.734
Table 3: Discriminant validity
Construct AI BD CB HRA ML NFN SMN
AI 0.829
BD 0.357 0.765
CB 0.346 0.67 0.800
HRA 0.34 0.48 0.523 0.853
ML 0.273 0.676 0.62 0.403 0.851
NFN 0.402 0.614 0.77 0.474 0.505 0.812
SMN 0.398 0.731 0.68 0.545 0.511 0.62 0.803
The researchers adopted a composite metric involving the geometric mean of the average
Average Variance Extracted (AVE) and the average coefficient of determination (R2) for
endogenous constructs to conduct the GoF analysis. This approach, as recommended
by Wetzels, Odekerken-Schroder, and Van Oppen (2009), offers a comprehensive
assessment of the model's goodness of fit. The GoF analysis results are typically
evaluated against specific cut-off values, where values of 0.10, 0.25, and 0.36 correspond
to small, medium, and large effect sizes, respectively. Applying this approach to the
current study, as indicated in Table 3 and Figure 2, the computed GoF index for the
structural model is 0.480. The calculated average AVE is 0.570, and the R2 value for
turnover intention stands at 0.405. The structural model's GoF index surpasses the cut-
off threshold proposed by Wetzels et al. (2009), indicating a highly favorable model fit.
This assessment underscores the alignment between the structural model and the
empirical data, affirming the robustness of the model's representation.
Moving forward, the researchers meticulously examined potential multicollinearity effects
among the constructs within the model. Multicollinearity can significantly impact the
accuracy and interpretability of outcomes, making it imperative to diagnose and address
this concern. Drawing from the insights of Grewal et al. (2004) and Hair et al. (2011), a
diagnostic criterion involving tolerance and variance inflation factor (VIF) values was
employed. For VIF, values not exceeding 5 (with variable values squared) and values not
below 0.2 were considered acceptable for tolerance. SmartPLS software does not provide
direct tolerance and VIF values in this context. However, it does offer latent variable
scores that can be utilized for this purpose. Upon analysis, as presented in Table 5, it is
evident that the criterion for tolerance and VIF values is met for the constructs within the
study model. Therefore, the diagnostic results indicate the absence of multicollinearity
effects among the constructs employed in the study model, enhancing the reliability and
integrity of the model's outcomes.
Main Effects and Path Coefficients
Table 4 displays the values of path coefficients (β), t-values, and the corresponding
significance levels for all connections from the bootstrap technique with 5000 resamples.
The path coefficient is significant if the t-value is more than 1.96 with a 5% significance
level in SMART PLS 4.0, using a two-tailed t-test. (See Figure 2). The resulted values for
the artificial intelligence (β= 0.111; t-value = 2.154; p = 0.0031), big data (β=0.222; t-value
= 5.352; p = 0.000), chatbots (β=0.189, t-value = 2.313: p = 0.021), machine learning (β=
0.135; t-value = 3.275; p = 0.001) neural fuzzy networks (β= 0.096; t-value = 2.674; p =
0.008) and social media networks (β= 0.284, t-value = 4.183; p = 0.000) demonstrate a
positive and significant association with HR analytics implementation. Therefore, the
constructs of artificial intelligence, big data, chatbots, machine learning, neural fuzzy
networks, and social media networks were accepted.
Table 4: Structural model estimates
Hyp Relationship Coefficient T value P values Results
H1 Artificial Intelligence -> HR Analytics 0.111 2.154 0.031 Supported
H2 Big Data -> HR Analytics 0.222 5.352 0.000 Supported
H3 Chatbots -> HR Analytics 0.189 2.313 0.021 Supported
H4 Machine Learning -> HR Analytics 0.135 3.275 0.001 Supported
H5 Neural Fuzzy Networks -> HR Analytics 0.096 2.674 0.008 Supported
H6 Social Media Networks -> HR Analytics 0.284 4.183 0.000 Supported
Source: Authors
DISCUSSIONS
The transformative impact of exponential technologies on the implementation of HR
analytics in the Indian IT sector. The findings reveal a significant relationship between
various exponential technologies such as artificial intelligence, big data, chatbots,
machine learning, neural fuzzy networks, and social media networks and the
implementation of HR analytics. This discussion delves into the implications of these
findings, shedding light on how these technological advancements are reshaping HR
practices in the dynamic and technology-driven Indian IT sector. One key highlight of the
study is the growing importance of data-driven decision-making in HR. The integration of
HR analytics has become crucial for effective workforce management and strategic
planning within organizations. The reliance on exponential technologies provides HR
professionals with advanced tools and methodologies to gather, analyze, and interpret
data, enabling them to make informed decisions that align with both business objectives
and employee needs. The study's focus on the Indian IT sector is relevant, considering
the sector's significant economic growth and its heavy reliance on data-driven insights.
The findings suggest that the integration of HR analytics and exponential technologies
provides a practical framework for HR experts in this sector. The ability to harness the
power of these technologies allows HR professionals to stay ahead of the curve,
addressing business challenges and adapting to the evolving needs of employees. This
research contributes valuable insights into the transformative impact of exponential
technologies on HR analytics implementation in the Indian IT sector. The findings
underscore the importance of embracing these technologies to stay competitive in a
rapidly evolving business landscape, where data-driven decision-making plays a pivotal
role in shaping HR practices and driving organizational success.
Limitations
While this study provides valuable insights into HR analytics implementation in the IT
sector, limitations in the research design must be acknowledged. Convenience sampling
from the Indian IT sector might introduce sampling bias, limiting broader generalizability.
The cross-sectional approach impedes establishing causality and understanding
temporal dynamics fully. Reliance on self-reported data introduces the potential for bias,
and common method bias could affect response accuracy. Despite pre-testing, participant
interpretation variations could contribute to measurement error. The study's scope and
focus on cross-sectional data constrain the identification of causal directions and the
potential influence of unobserved variables. Additionally, the study might need to look into
influential factors not included in the framework. Findings might not seamlessly apply to
other industries. Although SmartPLS 4.0 aids structural equation modelling, its limitations
compared to other SEM software could affect model assessment. The study's omission
of exploring moderating or mediating effects offers an avenue for future research. While
valuable for the IT sector, generalizing findings to diverse contexts requires caution.
Acknowledging these constraints, future research can enhance insights into HR analytics
implementation and its determinants.
Theoretical Implications
This research makes a substantial contribution to the theoretical landscape of HR
analytics by emphasizing its essential function in combination with exponential
technologies. It goes beyond standard HR analytics theory by illustrating how combining
artificial intelligence, big data, chatbots, machine learning, neural fuzzy networks, and
social media networks may improve HRM decision-making. Technology integration into
HRM theory the study promotes theoretical debates on the seamless integration of
technology into HRM processes. It offers valuable insights into the required development
of HRM theory, highlighting the critical integration of exponential technologies as essential
components of successful HRM strategies. This paper adds to the theoretical framework
of HRM by recognizing the critical role of technology. Technology driven HRM
transformation theoretical implications highlight technology's transformational influence
on HRM. This goes beyond typical HRM ideas, which often depend on intuitive methods.
Instead, it focuses on how HRM practices might transition from traditional methodologies
to data-driven, technology-enhanced tactics. This paradigm shift adds considerably to the
continuing discussion about HRM reform. Theorizing data-driven decision-making the
research underscores the theoretical significance of data-driven decision-making in
human resource management. It is consistent with known ideas that emphasize the
importance of scientific evidence and data analysis in influencing HR decisions.
Importantly, it emphasizes the importance of technology in allowing and improving data-
driven processes in HRM. Contextualization in industry specific HRM theory this study
adds to theoretical knowledge by underlining the necessity for context-specific HRM
theories by concentrating on the Indian IT industry. It emphasizes that HRM strategies
may need to be tailored to the unique dynamics of various sectors or areas. This
theoretical insight emphasizes the need to understand context in developing HRM theory.
Challenges and solutions in technology adoption theory the study addresses theoretical
issues related to technology adoption in HRM, such as data privacy and interpretability.
It adds to the theoretical debate by providing solutions and best practices for overcoming
these problems, expanding the literature on technology adoption theories in HRM.
HR professionals role in technology enhanced HRM theory This research looks at the
changing role of HR professionals in a technology-driven HRM world. Theoretical
implications emphasize the need for HR professionals to acquire new skills and
competencies, which aligns with current debates on the shifting responsibilities of HR
professionals in modern enterprises. Alignment with organizational performance theory
the study is consistent with known theoretical viewpoints that relate HRM strategies to
organizational performance. Technology enhanced HRM may significantly contribute to
better organizational results, confirming the theoretical underpinnings of HRM's strategic
role in accomplishing corporate goals. Data ethics and privacy in HRM theory This work
significantly advances theoretical arguments on data ethics and privacy. It emphasizes
the ethical implications and security imperatives associated with HR analytics, adding to
the continuing discussion about the responsible use of data in HRM. The theoretical
implications of this research study contribute significantly to the current corpus of HRM
theory. They underscore the substantial influence of exponential technologies, provide
reality, and virtual reality applications in human resource management. We can learn
about the digital HRM environment and provide firms with practical guidance from these
study subjects.
CONCLUSIONS
This study highlights the positive impact of emerging technologies such as artificial
intelligence, big data, chatbots, machine learning, neural fuzzy networks, and social
media networks on HR analytics implementation in the Indian IT sector. The rigorous
methodology, including measurement validation and structural equation modelling,
contributes to our understanding of technology-driven HR practices. The findings offer
valuable insights for academia and industry, guiding strategic decisions and showcasing
the potential of technology to enhance HR processes. While the study's focus on the IT
sector is significant, future research can expand to other sectors and regions to enrich
our understanding of technology's role in HR analytics. Overall, this study advances our
knowledge of how technology reshapes HR practices in the modern workplace.
Conflicts of Interest
The authors declare that they have no conflicts of interest that are relevant to the content of this article.
They have no affiliations with or involvement in any organization or entity with any financial or non-financial
interest in the subject matter or materials discussed in this manuscript. This declaration is made to ensure
transparency and uphold the integrity of the research presented in the manuscript.
Acknowledgment
The manuscript, titled "Transformative Influence of Exponential Technologies on HR Analytics," does not
entail any additional commitments or financial support from external entities. This research contributes to
the ongoing advancement of knowledge in the realm of Human Resource Management by means of
thorough academic investigation.
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