A Study on Hr Analytics Adoption Level of Human

Resource Management Practices in Select

Information Technology Companies- Descriptive
Study
VISHNU PRIYA SELVARAJ 
(

vishnuamlu@gmail.com
)
PSG College of Technology
Dr Santhi V 
PSG College of Technology

Research Article

Keywords: Organizational sustainability, HR analytics, Human Resource Management Practices, and

Informational Technology Companies

Posted Date: February 3rd, 2023

DOI: https://doi.org/10.21203/rs.3.rs-2530346/v1

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Abstract
Purpose:

The article aims to explore how organizational sustainability with the impact of HR analytics in Human
Resource Management practices.

Design/Approach/Methodology:

The study framed hypothesis to test and analyze HRM practices, HR analytics, and organizational
sustainability constructs. The research was based on primarily data and the data were collected through
questionnaires in online mode, from the targeted respondents belonging to HR employees of select IT
companies in India. AMOS and SPSS were utilized for this research.

Practical Implications:

In this study, a brand-new methodological approach was employed. The method was demonstrated to be
workable and scalable.

Findings:

The study’s findings showed a substantial correlation between the organizational sustainability concept
and the prediction of HRM practices.

Value/Originality:

The article employs a technique for HR analytics to forecast HRM elements of organizational
sustainability.

Introduction
Sustainability as a notion encompasses a broad of interventions in the environmental, social, and
governance domains, resulting in a significant heterogeneity among companies attributed to the reason
that such activity may be connected with differentiated opportunities in certain companies but not for
others.[1] Ideally, professional faith will result in beneficial results and long-term viability for a company. It
is primarily supported by positive leaders who encourage intelligent decision-making, which is crucial to
the organization's functioning. [2] Implementing new ecological approaches by the firm's human
resources and incorporating creative sustainable operations are two ways to meet the Sustainable
Development Goals (SDGs).[3] The junction between the COVID-19 epidemic and HRM is best understood
through sustainable HRM, which draws on the triple-bottom-line elements of the economic,
environmental, and social pillars of sustainability.[4] From the perspective of human resource
management (HRM), business sustainability is a management and leadership philosophy about how
people can best contribute to organizational success by reducing the harmful effects of their employment

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on environmental and social factors while enhancing economic aspects.[5] Sustainability is a major
topic, with an increasing number of foreign companies aiming to enhance their sustainability index as a
strategic corporate goal. To somehow be termed a sustainable business, an organization needs to go
while creating a substantial environmental impact.

Recently, the world’s largest Energy Sustainability Group (ESG) research consortium, the Global
Sustainability Research Alliance (GSRA) isolated the top ten percent of sustainability and financial
performers from a universe of 3000 developed and emerging market firms.[6] While there are
recommendations for theoretical models that may be used for painless integration, there is a lack of
literature that examines the real-world applicability of these models and the success (or failure) of these
models or tactics when implemented in the setting of companies.[7] It is within reach of corporate
executives of any successful application to demonstrate HR's market potential, use cause-effect analytics
to develop an enterprise HR strategy and make HR more efficient and cost-effective.[8] HR Analytics
offers a variety of benefits to firms, including forecasting workforce requirements, enabling HR to fulfill
corporate goals, and organization performance, all of which aid in business success.[9] The scientific
approach to business is undoubtedly paving the way for HR Analytics to shine. HR Analytics is causing
firms to retain adequate quality data for explaining ROI in HR investments, as well as driving the best HR
decisions with precise proof.[10]

Review Of Literature
In today's world, the sustainable organizational success of enterprises is the dominating method, with an
emphasis on improving profitability, social condition, and a healthy environment. This study investigated
the green human resource management (GHRM) and corporate social responsibility (CSR) mechanisms
toward sustainability performance execution using capability, commitment, possibility, and
understanding of the philosophy. [11]

Organizational sustainability should be concerned with corporate spirituality as well as environmental,

physical, social, and economic success.[12] It may be claimed that a more spiritual person makes
stronger decisions concerning the environment and the social and economic well-being of employees and
the local community, resulting in strategic and inclusive sustainability.[13] The globalization of the labour
market, along with a growing shortage of skilled and technological improvements, has resulted in large-
scale changes to recruitment procedures around the world through the application of HR Analytics.[14]
From the perspective of human resource management (HRM), business sustainability is a management
and leadership philosophy about how best people can contribute to success at work by reducing the
negative effects of their work on sociological factors while increasing economic factors in organizations.
[15]

HR analytics is becoming an advantage that every organization must have in this digitized and
technological era because it is the scientific solution for making evidence-based successful decisions
toward a sustainable future.[16] HR analytics adds to the development strategy by assisting in

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benchmarking, which is the process of using intelligence obtained about effective HR practices in other
organizations to improve an organization's HR practices. [17]HR analytics is the use of research designs
and advanced statistical techniques to evaluate HR data to find answers or make long-term choices
about HR challenges based on the evidence.[18] HR analytics data is used to forecast the prospective
results of critical HR and organizational strategy choices.[19]

Descriptive: it describes the "What" of HR data. It evaluates previous data to produce results. It features
monitors and key performance metrics that help to describe the data.[20] It is diagnostic in the sense that
it explains the "Why" of HR data. It provides a more in-depth examination of descriptive data.[2]
Predictive: it explains "What will" happen with HR data. It predicts the outcomes using statistical
modeling. It explains what will happen in the future.[21] Prescriptive: it assists in comprehending HR data
and providing evidence-based results. It employs simulation and optimization methods.[22]

HR analytics is very important in human resources management. In HR functions, the use of analytical
tools will help to grow at a faster rate and make evidence-based decisions. HR analytics collects and
analyses past data with positive and negative trends. It readily compares organizational performance
with competitors. [23]HR analytics is important in workforce planning, competitive advantage, employee
recruiting and retention, using data, producing findings and forecasts for organizations, performance
appraisal, data manipulation, choosing suitable modeling methodologies, and other areas related to HR.
[24]

Human resources are undergoing a revolution. Employee perceptions of their workplace have reached
new heights as a result of ever-changing human dynamics within the firm and an increasingly
competitive talent landscape. [25]To force decision-making, data analytics makes extensive use of
statistical analysis, including explanatory and predictive modeling, and truth-based total control. [26]Big
data analytics technologies can be utilized as input for human judgments or to force entirely
autonomous decisions. Querying, reporting, online analytical processing (OLAP), and "indicators" are all
examples of enterprise intelligence.[27] HR analytics is reaching more organizations and extends to a
wider range of users, from executives and line of business managers to analysts and other knowledge
workers, within organizations.

Research Gap

According to the literature, there has been numerous research on HR analytics. HR analytics is a novel
topic, and studies related to this topic are scarce. Several studies have been conducted to investigate the
relationship between HR analytics and organizational sustainability. Some authors have investigated the
impact of HR analytics in human resource management. However, the researchers did not pick and
examined all three elements of organizational sustainability, HR analytics, and the influence of human
resource management practices. This research might be regarded as a one-of-a-kind paradigm for
conceptualizing the interaction between HR Analytics, Organizational Sustainability, and HRM practices.

Objectives of the study

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 1. To analyze the HR analytics tool adoption level of Human Resource Management Practices in select
Information Technology (IT) companies of Tamil Nadu.
2. To evaluate the association between HR analytics and organizational sustainability

Hypothesis

 H1:      Organizational Sustainability is dependent upon the usage of HR analytic tools 

H2:      The relationship between the usage of HR analytic tools and organizational sustainability is
mediated by the human resource management practices of an organization

H3:      There is an association between Human Resource Management practices and HR analytics

Research Methodology
Descriptive analysis was used in this research was incorporated. A cross-sectional time frame to
investigate the impact of recruitment, training, placement, compensation, and employee absenteeism
reduction. A well-structured questionnaire was distributed to 100 HR experts working in IT companies of
various departments in Tamil Nadu. The questionnaire includes demographic profile, HR analytics role,
factors, problems, and Human resource management practice constructs. Internal validity was measured
by reliability. Cronbach's alpha measure was used to determine how well each item may be exploited to
evaluate the structures. Cronbach's alpha values > 0.6 were regarded as dependable. Respondents'
responses to questionnaire statements were graded on a 5-point Likert scale ranging from 1 to 5, with 1 = 
strongly disagree, 2 = disagree, 3 = neutral, 4 = agree, and 5 = highly agree. The data collected were
statistically examined.

The research was done and examined using a structural equation model, in which the constructs'
reliability was assessed and evaluated using the exploratory and confirmatory based factors-analysis
(EFA and CFA) methodologies. This study's reliability and confirmatory tests were carried out using EFA
and CFA methodologies.

Table 1
Reliability test for constructs
S. No Construct Item Alpha

1 HRM Practices 5 .747

2 HR Analytics 53 .917

3 Organizational Sustainability 61 .763

Source: Primary data

From Table 1, the analysis concluded that the reliability values of the HRM practices, HR analytics, and
organizational sustainability constructs were substantial, and so the constructs' reliability test is deemed
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to be acceptable and dependable for the proposed idea.

Table 2
Goodness of fit test
Measures Accepted Thresholds level Obtained Interpretation
value

Chi-square/df < 3; <5 sometimes acceptable 3.475 Excellent

P value for the model > .05 .627 Excellent

CMIN/DF Acceptable fit (1–5) 3.475 Excellent

The goodness of Fit (GF) Greater than 0.9 .990 Excellent

Adjusted Goodness of Fit Greater than 0.9 .945 Excellent

(AGFI)

Comparative Fit Index (CFI) > .95 is great; >.90 is traditional and 1.000 Excellent
> .80 is sometimes acceptable

Root Mean Square Error of < .05 is good; .05-.10 is moderate and .000 Excellent
Approximation (RMSEA) > .10 is bad

Source: Primary data

Table 2, shows that the CFI is 1.000, the GFI is 0.990, the AGFI is 0.945, the SRMR is 0.07, the RMSEA is
0.000, the P near values is > 0.05, and the P-value for the simulation model is > 0.05. Based on the
analysis and results, it is obvious to note that the produced numbers/results are within a tolerable range,
indicating that the developed model fits positively well.

Testing the path and hypothesis

Structural equation modeling expresses relationships between theoretical conceptions by regression or

path coefficients. The single-headed arrows depict the model's causal link, with the variable at the tail of
the arrow being the cause of the variable at the point. The regression coefficients are shown statistically
by single-headed arrows.

Table 3 shows that unstandardized regression weights (beta Co-efficient) of constructs are depicted in
the following table:

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 Table 3
Path analysis structure maximum likelihood- regression weightage
Path     Estimate S.E. C.R. P

HR analytics <--- Recruitment 1 − .030 .107 − .279 .780

HR analytics <--- Training 2 .255 .147 1.732 .083

HR analytics <--- Placement 3 − .010 .173 − .058 .954

HR analytics <--- Compensation4 − .031 .134 − .233 .816

HR analytics <--- Maintenance 5 − .054 .118 − .452 .651

Organizational sustainability <--- HR analytics − .040 .109 − .369 .712

Source: Primary data

Table 3 highlighted that the relationships between HRM practices constructs values measured through
the unstandardized regression coefficient (β) were significant. The hypotheses were tested out effectively
and the results were obtained through the adopted techniques and methods the following table shows
that the developed hypotheses were accepted.

Table 4
Results of the hypothesis
S. Hypothesis Accepted/Rejected
No

1 Organizational Sustainability is dependent upon the usage of HR analytic Accepted

tools in an organization

2 The relationship between the usage of HR analytic tools and Accepted

organizational sustainability is dependent upon the usage of human
resource management practices in an organization

3 Human Resource Management practices are dependent upon the usage Accepted
of HR analytics tools

Results And Discussion

Table 1- Cronbach's alpha should be > .6 for the results to be excellent or good. If the score is ≤ .5, the
findings of the tests are judged to be untrustworthy, and the constructs and variables are updated or
changed as a result. The statistical value of the reliability test for the construct of HRM Practices = .747,
HR analytics = .917, and Organisational sustainability = .763. The result of the study shown in Table 1
confirms that the proposed model has reasonable data to fit what was implied.

Table 2- interprets that the Chi-square/df = 3.475, P value for the model = .627, CMIN/DF = 3.475,
Goodness of Fit (GF) = .990, Adjusted Goodness of Fit (AGFI) = .945 Comparative Fit Index (CFI) = .1.000,

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Root Mean Square Error of Approximation (RMSEA) = .000. Therefore, the statistical value was perfect
and it denotes that the model is fit and implied.

Table 3-expresses the structural equation model, it is possible to conclude that HRM practices, HR
analytics, and Organisational sustainability factors were statistically significant which means that HRM
practices (recruitment, training, placement, compensation, and maintenance aspects like employee
absenteeism) have a significant influence on the organizational sustainability. It could be observed from
the analysis that HR analytics has a direct influence on organizational sustainability.

The measurement of the coefficient of variance was disclosed in Table 3 which reveals that Recruitment
(β =-.030, p = .780), Training ((β = .255, p = .083), Placement ((β =-.010, p = .954), Compensation ((β =-.031,
p = .816), Maintenance ((β =-.054, p = .651) and Organisational Sustainability ((β =-.040, p = .712). Thus,
all four hypotheses H11, H12, H13, and H14 were framed and stand to be accepted.

Finally, People-related data is commonly used for HR analytics. Using modern technology, organizations
can now monitor the contents of people's e-mails, SMS, social media, and mobile phone data. As a result,
the majority of these employee data can be highly sensitive, raising serious concerns about
organizations’ ability to handle this data ethically.HR analytics adoption is critical for industries
experiencing a talent shortage to develop strategies for attracting and retaining the right people for the
right job with the right remuneration. If a company is aware of this, they can meet their competitors easily
to manage their personnel. This will feel like a strong call to action or pressure to implement HR analytics
and they will quickly lose their competitive edge if they do not.

Conclusion
The research concluded with HR professionals having analytical skills alone; they must also be able to
develop rich insights from all types of data. Analytical insights help the organization to achieve a
competitive advantage by (a) identifying areas where skill has a significant potential for significant
implications, (b) attaching HR practices to achieve organizational performance, (c) evaluating and
working to improve the organization's HR strategy, and (d) assessing the feasibility of new business
strategies. HR executives can learn how to undertake analytics processes even if they do not perform
actual data processing since data scientists do not comprehend the relationship between data and
people to address the organization's strategic questions.

Declarations
Declaration of Conflicting Interests

The authors have declared that no potential conflicts of interest with respect to the research, authorship
and /or publication of this article.

Funding

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This research received no specific grant from any funding agency in the public, commercial or not-for-
profit sectors.

Acknowledgments

The author wishes to thank all educational institutions and HR professionals for their invaluable
assistance during the data collection periods.

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Figures

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Figure 1

The conceptual framework for HRM practices, HR analytics, and organizational sustainability

Source: Authors

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Figure 2

Structural equation modeling analysis goodness of fit model

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Figure 3

Second Run the Path Diagram with unstandardized Regression Weight

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