HR Metrics: Importance, Analytics, and Error Avoidance

This assignment explores the importance of human resource (HR) metrics, also known as human capital management, as a framework for collecting, consolidating, and understanding information for future events. The student's work addresses the significance of HR metrics in making informed organizational decisions, providing insights for future planning, and utilizing past data for improvements. It also discusses the application of descriptive and prescriptive analytics by HR managers, including creating reports, conducting surveys, and identifying sales trends for future predictions. Furthermore, the assignment outlines how to avoid common errors in metrics, such as applying them in a vacuum, forming too many metrics, using only standard metrics, and failing to align metrics with business goals. The paper leverages insights from "The New HR Analytics: Predicting the Economic Value of Your Company's Human Capital Investments" by Jac Fitz-enz, providing a comprehensive understanding of HR metrics and their practical application.

Running head: IMPORTANCE OF THE HR METRICS
IMPORTANCE OF THE HR METRICS:
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IMPORTANCE OF THE HR METRICS
1.Why is it important to use human resource metrics?
Human resource metrics which is also known as the human capital management is a kind of
framework that is being utilized to collect, consolidate and even understand the information
regarding the events that is about to take place in the upcoming future (Boon, Den Hartog &
Lepak, 2019). One of the most important uses of human resource metrics is that it helps to make
better decisions for the organization instead of being very dependent on the destiny ((Jac Fitz-
enz, 2010).It provides an insight into the upcoming future and make the necessary changes
accordingly. (Garcia-Perez, Gheriss & Bedford, 2019). The human resource metrics gives
informations about the past collected materials. Reviewing the previous data enables to make
alterations in the upcoming plans.
2.If you are a human resource manager, how would you make use of descriptive and
prescriptive analytics
Descriptive analytics helps by providing information from the past (Kalaian, Kasim &
Kasim, 2019). As a human resource manager, descriptive analytics can be utilized to create a
report of the organization. The report can be formed through observation and case studies.
However, this can also be utilized by conducting surveys among the employees of the
organization (Jac Fitz-enz, 2010).
The prescriptive analysis helps in understanding the future by predicting it, which helps the
company in making the necessary changes as per the requirements (Deshpande, Sharma &
Peddoju, 2019). It can also be utilized through the identification of the trend that is being
followed in sales and making plans accordingly.
3.How would you avoid four common errors made with metrics?

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IMPORTANCE OF THE HR METRICS
One of the common errors hat is being made with metrics is that it is being applied in a
vacuum that is the metrics are being applied within the functional area of the Human resource
management. In such a situation, the metrics are being provided according to the likes and
dislikes of the Human resource management and not according to the preferences of the
management (Jac Fitz-enz, 2010). However, this mistake can be avoided by the collaborating of
the employees. The preferences of the employees working in the organization must also be
considered and implemented.
The second most common error that is being made with metrics is that too many metrics are
being formed which leads to problems in interpreting them. In order to avoid this problem, only a
single metric should be formed which would focus on the goals of the organization (Jac Fitz-enz,
2010).
The third most common error that is being made through metrics is that only the standard
metrics are being utilized. The metric which is applicable in all organizations may be work well
in other specific organizations ((Jac Fitz-enz, 2010).Therefore, a metric, which suits the
requirements of the organization, must be made and implemented accordingly to avoid any
errors.
The fourth most common error with the application of metrics is that it is often not tied with
the goals of the business. In such a situation, no value is being added if the metrics are not
specified to the business goals of the organization. The metrics that are specific to the ultimate
goal, which the company wants to achieve, must be implemented to avoid the errors in the
organization.

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IMPORTANCE OF THE HR METRICS
References
The New HR Analytics: Predicting the Economic Value of Your Company's Human Capital
Investments by Jac Fitz-enz AMACOM. (c) 2010.
Boon, C., Den Hartog, D. N., & Lepak, D. P. (2019). A systematic review of human resource
management systems and their measurement. Journal of Management,
0149206318818718.
Deshpande, P. S., Sharma, S. C., & Peddoju, S. K. (2019). Predictive and Prescriptive Analytics
in Big-data Era. In Security and Data Storage Aspect in Cloud Computing (pp. 71-81).
Springer, Singapore.
Garcia-Perez, A., Gheriss, F., & Bedford, D. (2019). Metrics for Knowledge Management
Capabilities. In Designing and Tracking Knowledge Management Metrics. Emerald
Publishing Limited.
Kalaian, S. A., Kasim, R. M., & Kasim, N. R. (2019). Descriptive and Predictive Analytical
Methods for Big Data. In Web Services: Concepts, Methodologies, Tools, and
Applications (pp. 314-331). IGI Global.

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IMPORTANCE OF THE HR METRICS