Bi hrm presentation - Using Business Intelligence for improving Human Resources Management

1Proprietary and Confidential © ERP India – Vispi Munshi – erp-india.org

Using Business Intelligence for improving Human Resources Management

Vispi MunshiFounder - ERP [email protected]://www.erp-india.com



Today’s Agenda

- Introduction

- What is HRM (Human Resources Management)

- HRM Functions

- What is Business Intelligence

- Data Analytics

- Applying BI to HRM: Examples

- HR Metrics

- HR Intelligence System

- HR Analytics Demo

- Conclusion, Q&A



Ground Rules

- Please turn mobile ringer to SILENT MODE

- If you have to take a call, please leave the room and then start talking

- Questions can be asked any time

- Before asking question, raise your hand

- No talking with each other

- Disagreements allowed, but no disrespect

- Timeframe awareness

- Lets learn from each other and increase our knowledge



Introductions

- Full Name

- Where do you work (Company/Consultant/Student etc)

- Your job designation and responsibilities

- Any BI tool you have already used?

- Any HRM experience?

- Expectation from this workshop



What is Human Resource Management

HRM is about management of people such that organizational goals are supported by aligning individual goals and if required with additional people/contracts.

Since man is the most uncontrollable and unpredictable variable of all Since man is the most uncontrollable and unpredictable variable of all production variables, organizational success depends on the management production variables, organizational success depends on the management of people.of people.

Org Goals: Profits, Growth, Social responsibilites

Individual Goals: Security, Belonging, Respect, Achievement



What is Human Resource Management

Employee Productivity – Tools and know-how or skills to perform

Employee Motivation – Willingness to perform

Challenging Employees – Using creativity and innovation to further increase motivation



Key HRM functions

- Human Resource Planning (forecast)

- Recruitment (staffing)

- Organization (managing grades and promotions)

- Training and Development

- Payroll and Benefits Administration

- Performance Appraisals

- Communications and Arbitration (Conflicts management)

- Industrial Relations (Unions)

- Alumni Relations

- Knowledge Management



What is business intelligence?

Business Intelligence is a term generally used to identify a class of Information System applications useful for supporting operational, tactical and strategic decision making of a organization.

BI deals with producing (and presenting) Accurate, Relevant and Timely (ART) INFORMATION from integrated data.

Not Accurate: Users loose faith in system

Not Relevant: Users ignore the system

Not Timely: Users find alternatives to the system



Benefits- Sales Optimization

- Cost Reduction, Planning and Budgeting

- Inventory Optimization

- Purchase Optimization

- HR Optimization

- Production / Manufacturing Optimization

- Demand Forecasting

- Market Competitive Analysis and Customer Relationship Optimization

- Supply Chain (Sales and Distribution) Optimization

- Most Important is ART Information to support all levels of Decision Making

- Aim is to replace/reduce Excel based Analysis



BI System Anatomy

BACK-ENDData Collection and

Integration Tools

ERP

Ecomm

CRM

Files

….

Data Mart

Forecasting, Mining

PRESENTATION

FRONT-END

Analytics, Visualization, Dashboards, …

DISTRIBUTION

Alerts, Email, Mobile, Intranet ….



Backend BI Tools: Used for collection, integration and consolidation of data from various sources.

Intermediate BI Tools: Allows users to create forecasts and identify trends (data mining) from the data.

Frontend BI Tools: Provides users with a interactive and intuitive interface to view the information generated.



- Based on multi-dimensional view of data (cubes)

- Pivot Table demo

- Features for drilling in and across data

- Slicing and dicing of data

- Graphics capabilities

- Similar to Excel

- Exception reporting

- Data Analyst would use such tools and create Reports/Analysis/Graphs (objects)

- These objects would be supplied to Executives using Dashboards, Alerts etc.

Data Analytics (New Age Decision Support Systems)



Multi-dimensional Data



High-end: Business Objects, OBIEE, Microstrategy, …

Open Source: http://en.wikipedia.org/wiki/Business_intelligence_tools

Data Analytics Tools in Market



Dashboards and Alerts

- Dashboards are collection of reports/analysis/graphs

- Alerts are specific events that the system finds and sends a email/sms etc to the executive

- Key Performance Indicators (KPI’s) can be set and linked to alerts

- Linking across objects provides executive with ability to go through the generated information in a very intuitive manner





Data Mining

- Also known as KDD (Knowledge Discovery in Databases)

- Involves use of large data sets

- Involves uses of Statistical Methods, Database Systems and Artificial Intelligence

- The objective is to discover patterns or knowledge from existing data

- Involves four step process: Data Preparation (classification), Hypothesis (user provided guidance), Discovery (of knowledge) and Validation (of discovered knowledge against hypothesis)

- Techniques: Classification, Clustering, Association Rules, Regression

- Predictive Analytics

- High end tools: SPSS, SAS, …

- Open Source: http://en.wikipedia.org/wiki/Data_mining





HR Metrics

- Headcount by various dimensions like demographics, location, function, grades etc

- HR Costing by function, location etc

- Benefits Costing

- Costing of HR functions (recruit, train)

- Skills by location, function, grade etc

- Employee Performance by function, demographics, location etc

- Employee Turnover by function, demographics, location etc

- Equity holding by employees



Using BI for HRM

- Example 1: Predicting which Employees are likely to Perform Well.

- Example 2: Predicting which Employees are likely to leave (turnover)

- Example 3: Recruiting Intelligently based on Performance Records

- Example 4: Forecasting Staff Requirements based on Organization Goals, Turnover Prediction, Staff demographics



Using BI for HRM : Predicting which employees are likely to Perform Well

Past Employees Records-Demographics- Education, Location- Skills, Trainings- Duration, Grade etc

Past Performance Records

Create Model (Association Rules, Clustering

Performance Model (Decision Tree, Neural Network)

Current Employees Records-Demographics- Education, Location- Duration, Grade etc

Current Performance Records

Prediction Algorithm (Classification)

Performance Predictions

Analytics



Using BI for HRM : Predicting which Employees are likely to leave (turnover)

Past Employees Records-Demographics- Skills- Salary, Benefits- Education, Location- Duration, Grade etc

Past Employees Records

Create Model (Association Rules, Clustering

Turnover Model (Decision Tree, Neural Network)

Current Employees Records-Demographics- Skills- Salary, Benefits- Education, Location- Duration, Grade etc Prediction

Algorithm (Classification)

Turnover Predictions

Analytics



Using BI for HRM : Recruiting Intelligently based on Performance Records

Employee Profiles- Location- Demographics- Education, Skills

Employee Performance Records

Create Model (Association)

Model (Decision Tree)

Shortlisting



Using BI for HRM : Forecasting Staff Requirements based on Organization Goals, Turnover Prediction, Staff demographics

Consolidation

Turnover Predictions

Staff Demographics

Staff Requirements Predictions

Organization Goals



HR Intelligence System

BACK-ENDData Collection and

Integration Tools

ERP, HRM

Industry data

….

HR Data Mart

Recruitment

Training/Skills

HR Costing

Knowledge Management

HR Planning





HR Analytics Demo



Q&AThank You

[email protected]

98250 11489

Bi hrm presentation - Using Business Intelligence for improving Human Resources Management

Data & Analytics