Application of Analytics In HR Influences Employee Performance

Abstract

Performance management has long been an important function of HR. Performance management helps employees know if they are meeting their goals and gives them clear indicators of what parts of their performance could be improved. Purpose of this paper aims to explore the role of human resource HR analytics in influencing on employees performance. In doing so, the paper examines various topics and modules under performance management system which may influence employee’s performance and how HR analytics can be a potential solution to deal with. The paper proposes that the use of HR analytics will be negatively related to subjectivity bias during the review and appraisal system in the PMS process, thereby positively affecting employees’ perceived accuracy and fairness. This further positively affects employees’ in their performance. The paper provides implications for both researchers and practitioners in the performance management area for improving employees’ performance by applying HR analytics as a strategic tool in influencing employee overall performance during PMS process. The paper offers insights into how the use of HR analytics in various process in PMS – Performance planning, Performance coaching, Performance review and Career advancement can deal with issues of subjectivity bias in the entire PMS process and how the usage of evidence based data and historic data influence employee performance. The data is collected data through primary research to propose recommendations and suggestions which will be showcased through a model helping organizations to take strategic decisions during employee performance management process.