HR Analytics Framework

HR Analytics Framework:
The framework of analytics gives an idea about how analytics way of work is done.
It includes the connections between data inputs and outputs which are different with
other organisations.
The LAMP Framework:
Logic
Competitive advantage, talent points
Process effective HR Analytics Valid questions

knowledge management Metrics and results
Measure quality data

Logic ( What are the Vital Connection):
Without a proper logic, it is impossible to know where to look for insights. The logic
element of any measurement system provides the” story” behind the connections
between the numbers and the effects and outcomes.
In the field of human resources, there are many logical frameworks, including
salary structures, workforce –planning models, and even labour contracts. All are
useful, but they are not sufficient to connect decisions about investments in HR
programmes to strategic outcomes. In contrast, some authors have proposed a
“service –value-profit” framework for the customer –facing process. This
framework calls attention to the connections between HR and management
practices, which in turn, affect employee attitudes, engagement, and turnover which
in turn affects the experience of customers. This in turn customer – buying
behaviour , which in turn affects sales, which in turn affects profits.
Measures (Getting the numbers Right):
The measures part of the LAMP model has received the greatest attention in HR. Much
time and attention is paid to enhancing the quality of HR measures, based on criteria such as
timeliness, completeness, reliability and consistency. These are certainly important
standards, but lacking a context, they can be pursued well beyond their optimum levels or
they can be applied to areas where they have little consequences.
There are many ways to make HR measures more reliable and precise. An exclusive focus
on measurement quality can produce a brighter light shining where the keys are not.
Measures requires investment, which could be directed where it has the greatest return, not
just where improvement is most feasible. Organisations routinely pay greater attention to
some elements of their materials inventory more than others. Indeed, a well –known
principle is the “80-20 rule” that suggests that 80 percent of the important variation in
inventory costs or quality is often driven by 20 percent of the inventory items. Thus,
although organisations indeed track 100 percent of their inventory items, they measure the
vital 20 percent with greater precision, more frequently and with greater accountability for
key decision-making.
Analytics ( Finding Answers in the Data):
Analytics is about drawing the right conclusions from data. It includes statistics and
research design, and it then goes beyond them to include skill in identifying and
articulating key issues, gathering and using appropriate data within and outside the
HR function, setting the appropriate balance between statistical rigour and practical
relevance, and building analytical competencies throughout the organisation.
Analytics transforms HR logic and measures into rigorous, relevant insights.
Analytics often connect the logical framework to the “science related to talent
and organisations, which is an important element of a mature decision science.
Advanced analytics are often the domain of specialists in statistics, psychology,
economics, and other disciplines. To augment their own analytical capability, HR
organisations often draw upon experts in these fields and internal analytical groups
in areas such as marketing and consumer research.
Process (Making Insights Motivating and Actionable):
The final element of the LAMP framework is process. Measurement affects
decisions and behaviours, and those occur within a complex web of social
structures, knowledge frame and organisational cultural norms. Therefore effective
measurement systems must fit within a change-management process that reflects
principles of learning and knowledge transfer. HR measures and the logic that
supports them are part of an influence process.
The initial step in effective measurement is to get managers to accept that HR
analysis is possible and informative. The way to make that happens is not
necessarily to present the most sophisticated analysis. The best approach may be to
present relatively simple measures and analyses that match the mental models that
managers already use.
HR Maturity Framework : From 1 to Level 5
Levels of HR Maturity: Level 5 Change

Optimising management
Continuously improving
Level 4 Capability practices
Predictable management
Measured and empowered
Level 3 Competency
practices
Defined management
Competency- based
Level 2 People practices
Managed management
Level 1 Inconsistent Repeatable

Initial management practices
People Capability Maturity Model

Level 1 (Initial – Inconsistent Management):
At this basic level, organisations characterised by ad hoc and inconsistent work

processes and the work personnel resort to cutting corners in a rush to meet
deadlines resulting in poor quality, delays and cost blowout. ‘A fundamental premise
of the process maturity framework is that a practice cannot be improved if it cannot
be repeated’.
Due to the immaturity of the organisation, people struggle to repeat successful
work practices and meet delivery deadlines as goalposts keep changing. In this
environment, people routinely deflect responsibility and become emotionally
drained and detached. Managers either ignore or are ill- equipped to deal with HR
issues leading to high employee turnover and low morale.
Level 2 ( Managed – People Management):
In order to escape from inconsistent and unproductive work practices, organisations

must establish a stable work environment. ‘The primary objective of a Level 2
environment is to enable people to repeat practices they have used successfully. To
enable this repeatability , management get control of commitments and baselines’.
The top management needs to show firm commitment to learning and
development activities in order to continuously improve the knowledge , skills
motivation and performance of its workforce. By providing continuous performance
feedback, they need to ensure that team members have the necessity skills and
resources to carry out their work and keep their knowledge up-to-date.
Level 3 ( Defined- Competency Management):
At this level, organisations are able to identify competency-based best practices that
most suit the organisational environment and incorporate them as everyday work
practices. “ These practices are documented and integrated into a common process
in which the entire organisation is then trained;, leading to a professional culture.
The workforce capabilities should clearly align with business objectives leading to a
distinct competitive advantage.
At this level, an organisation- wide framework of a strategic workforce plan
and workforce competencies established. “When the organisation achieves maturity
Level 3, the conditions required for empowerment- competent people, effective
process, and a participatory environment – are established’.
Level 4 ( Predictable – Capability Management):
Once the work processes are established and institutionalised, the organisations
acquire the necessary capability to predict and effectively manage its future
performance. Where deviation occur, ; the cause needs to be determined and
corrective action taken if necessary when the organisation can characterise the
performance of its processes quantitatively, it has profound knowledge that can be
used to improve them’.
‘The quantitative management capabilities implemented at Maturity Level
4 provide management with better input for strategic decisions, while encouraging
delegation of operational details to people close to the processes’.
Level 5 ( Optimising – Change Management):
At this highest level of maturity, the work processes and practices undergo
continuous environment to effectively meet the challenges of constantly changing
environment. ‘Managing technological and process change become standard
organisational processes and process of improvement throughout the organisation
becomes perpetual’. People are empowered to engage continuous improvement.
At this level, change management becomes integral and routine part of
organisational life. ‘At maturity Level 5, individuals are encouraged to make
continuous improvements to their personal work processes by analysing their work
and making necessary process enhancements. The organisation also need to ensure
that best practices are shared and implemented across the entire organisational
network rather than being isolated to just some parts.
HCM: 21 Framework:
The Human Capital Management framework for the twenty –first century (HCM - 21) consists of
following four phases:
1) Scanning: All the external market forces and internal organisational factors are listed in terms of
how they might affect the organisations human, and relational capital. Additionally , the
interdependencies and interactions across these three forms of capital are recognised and
accounted for. This is the Critical, often ignored, point.
2) Planning: Workforce planning is reconstituted as capability development. The industrial era, gap-
analysis, structure-focused model is replaced with an agile system focused on building
sustainable human capability rather than finding positions; in fact many of those older positions
will be restructured or eliminated.
3) Producing: Human resources services are studied as processes with inputs, throughputs, and
outputs. Statistical analysis is applied to uncover the most cost-effective combination of inputs
and throughputs to drive desired outputs.
4) Predicting: A three-point measurement system is designed to include strategic, operational, and
leading indicators. The causal and correlational aspects of the three points are used to tell a
comprehensive story.

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HR Analytics Framework:

Process effective HR Analytics Valid questions

Measure quality data

Levels of HR Maturity: Level 5 Change

Level 1 Inconsistent Repeatable

People Capability Maturity Model

At this basic level, organisations characterised by ad hoc and inconsistent work

In order to escape from inconsistent and unproductive work practices, organisations

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