HR analytics and performance appraisal system

Abstract

PurposeThis paper aims to explore the role of human resource (HR) analytics on employees’ willingness to improve performance. In doing so, the paper examines issues related to the performance appraisal (PA) system which affect employees’ willingness to improve performance and how HR analytics can be a potential solution to deal with such issues. Design/methodology/approachThe paper develops a conceptual framework along with propositions by integrating both academic and practitioner literatures, in the field of HR analytics and performance management. FindingsThe paper proposes that the use of HR analytics will be negatively related to subjectivity bias in the PA system, thereby positively affecting employees’ perceived accuracy and fairness. This further positively affects employees’ satisfaction with the PA system, which subsequently increases employees’ willingness to improve performance. Research limitations/implicationsThe 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 the PA system. It also provides implications for future researchers to empirically test the conceptual framework in different organizational settings. Originality/valueThe paper offers insights into how the use of HR analytics can deal with issues of subjectivity bias in the PA system and positively affects employees’ willingness to improve performance.

Effect of Performance Review and Faculty Development to Organizational Climate

“…But according to a review, after examining literature, it found that student evaluation of teaching (SET) is not an excellent choice for summative evaluation [8]. A duo proposed that the use of HR analytics negatively associates with the subjective bias in the performance appraisal system [9]. In addition, conventional evaluation methods lack assigning weight to individual criteria and rely much on numerical values [10].…”

The Impact of HR Analytics on the Training and Development Strategy - Private Sector Case Study in Lebanon

“…The result is that smaller businesses miss out on many of the benefits of HR analytics that are enjoyed by larger businesses. These benefits include employee development, employee retention, and higher competitiveness and productivity (Chaturvedi, 2016;Sharma & Sharma, 2017).…”

“…Thus, HR analytics enables HR to become a strategic partner in organizational decision making. Studies on the impact of HR analytics have reported improvements in human capital management (Mihalcea, 2017), increased levels of employee productivity (Sharma & Sharma, 2017), higher return on human capital investment (Mihalcea, 2017), and workplace learning (Giacumo & Breman, 2016).…”

“…They assist large organizations to find solutions to various issues affecting their human resource, such as the most ideal plan of compensation, the features of an organization required to attract and retain talent, and the metrics of determining promotions. Therefore, HR analytics help a business to transform regular descriptive information and numbers into meaningful outcomes (Sharma & Sharma, 2017).…”

“…Spahic (2015) reported that by overlooking past mistakes and instead focusing on predictive analytics, HR can be able to overcome past failures and mistakes, avoid repeating them in the future, and predict future outcomes. Analytics enable HR to manage future opportunities and risks (Sharma & Sharma, 2017).…”