HR ANALYTICS

SESSION 2
Dr. NIVEDHITHA KS,
OB & HR,
IIM K
Statistics- Simplified

• To decide or predict, the significance of the results should be ensured.

• Statistical significance:
• Due to time poverty, we like samples better than the population.
• Build a hypothesis from the assumptions and test it using several predictive modeling techniques.
• AH: Family support help women break the glass ceiling at the workplace
• NH: Family support doesn’t affect women’s career growth.
• Why do we use p-value for significance testing?
• P<0.05, p<0.01, p<0.001

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Classification of Data
Nonmetric scales: Nominal scale: numbers are given only to label the objects and not to offer quantitative
measures only the meaning
presence/absence Male-1, Female-2
of an attribute,
not the amount Ordinal scale: numbers offer relative positions of the variables.
Products with 2, 10 and 20 positive ratings can be rank ordered.

Metric scales: the Interval scale: Fahrenheit and Celsius.

amount of 40 degrees is not twice of 80 degrees.
attributes are
known
Ratio: All mathematical operations
10 years of age is twice of 5 years.

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Group level

• Team performance, Leader’s performance,

team staff turnover

Individual level
Levels of • Job satisfaction, motivation, performance,
Data gender, etc

Multi-level

• Between individual and with-in individual.

• Between groups- within groups
(Leadershipindividual creativity)

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Data Integrity
Data from different sources(HR, attitude surveys, customer satisfaction,
performance data)

Different formats

Different complexity levels

The type of data defines certain modeling and analytics techniques.

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 Introduction to variables
Universal law is that output is a function of several inputs.
In Analytics there are,
• Independent variables
• Dependent variables
• Mediating variables
• Moderating variables

Let’s take an example:

The induction program increases the performance of the new hires.
The effect of induction on the performance is higher when the training session happens in the
morning session.
Induction increases social bonding between the new hires and the seniors and further, increases the
performance of the new hires.

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 Statistical Tool Kit for HR professionals- Basic concepts
DV IV Test Type of questions that can be
answered with the tests

Categorical Only one and categorical Chi-square Explores whether the frequencies
and
proportions found across
particular categories (e.g. male
versus
female) might vary or be linked to
another category (e.g.
part-time versus full-time).

Binary Continuous or categorical Logistic regression Predicts the likelihood of

occurrence based on multiple
parameters. (Assess whether
certain factors like gender,
pressure, supervisor type and
salary influence one decision to
quit or to stay)

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 Statistical tool kit for HR professionals- Basic concepts
DV IV Test Type of questions that can be
answered with the tests
Continuous DV Categorical binary(two groups) Independent samples t-test Assess whether two group differ on
certain dimensions. (Can check whether
males socialise better compared to
females at workplace)
Continuous DV One group but sampled at two different Paired sample t-test Checks whether the group differs on a
times dimension across different times. (Can
check whether team’s performance is the
same before and after hybrid work
culture)
Continuous DV Three or more groups One way ANOVA Assess whether three or more groups
differ on certain dimension. (Can check
whether HR professionals are showing
organisational citizenship compared to
Marketing and R and D)
One continuous DV One continuous IV Simple correlation/regression Checks whether two variables are
related/ causal to one another E.g.
Marital status is related to acceptance to
hybrid work culture/ Marital status
affects one’s intention to accept hybrid
work culture.
Continuous DV Two or more continuous IV Multiple regression E.g. Age, team size, team satisfaction
and collaborative culture increases
creativity

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Paired Sample test
Check whether performance before and
after training varies?
Same samples, different time frames,
variable is continuous.
H0:There is no difference in performance
before and after training
DataData analysisPaired sample for
means.
If p<0.05 and T value> t critical, then reject
the null hypothesis.
Independent sample T-test
Check whether performance differs across the
gender
Different samples, same time frame and
continuous variable.
H0: No difference in performance across the
gender.
H1: There is a difference in performance across
the gender.
DataData analysisIndependent sample t test.
Assume equality of variances if larger
variance/smaller variance is lesser than 4
One sample t test
• Check whether the performance effectiveness
after training is greater than 4.
Sample-one set, cross-sectional, continuous
variable.
H0: Performance is<=4
H1:Performance is >4
(One tailed test)
Introduce dummies to test one sample t test
using independent samples test.
One way ANOVA
• Check whether the turnover rate changes across team
size.
• Categorical variable, continuous variable and cross
sectional
• H0:u1=u2=….un
• Reject the null hypothesis if f value is greater than
critical value
F distribution:
Chi-Square

• Check whether there is an association

between recruitment source and
employment status
• AddinReal statisticsMiscChi
square
Linear regression
• Check whether tenure (service)affects
performance appraisal score
• Both iv and dv are continuous
variables

• DataData analysisregression
Multiple linear regression
• Check whether social media
affordances affect agility at
workplace.
• AddinReal statisticsmultiple
linear regression
• Desirable effect: Regression
coefficient> 0.3
Logistic regression
• Whether gender, age, service and
performance vary across gender.
• DV: categorical(binary in this case)
• AddinReal
statisticsRegLogistic and probit
regression
Exercise!

• If you have survey data: performance score, demographic details such as gender (M/F), Marital
Status(Married, Single), Position(Junior assistant, Team Lead, Manager, Divisional Manager),
Years of Experience(1-3, 4-7, >8), Work pressure(survey questions- Strongly agree to strongly
disagree), Job satisfaction(Yes/No), performance after appraisal, performance before appraisal and
Number of friends at work
• What are the tests you may perform to understand your employees better?

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