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Research Paper:

HR analytics using R-machine learning algorithm

- Multiple linear regression analysis

Author: Dr.A.M.Mahaboob Basha

Research Paper Published on:

03 January 2021

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Team Presentation

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Muskan KothariA041

Siya GuptaA001

Priyangi JainA013

Tanya SabharwalA021

Ananya SharmaA016

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Introduction

  • HR Analytics – third in trending
  • Predictive analytics concept – employee job performance
  • Data ratio - 30:70
  • Generalized to any sector

It provides new insights to readers and analysis not published by any other.

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Literature Review

M R S Surya Narayana Reddy et al

Lot of influence by existing HRD practices on employee performance.

Federici et al

Investigate whether career planning and development will enhance the performance of employee.

Lina Hamdan Mahmoud Al-Abbadi

Employee commitment and dedication mediates the significant positive impact on employee performance.

Srinibash Dash & Uma Charan Patti

HRM is a continuous process and contemporary issues need to be handled.

Employee growth and high performance in IT companies.

Zeinab Inanlou & Ji-Young Ahn

Communication, trust, commitment, innovativeness, participation, employee training are positive influences.

Jae Young Lee et al

Top management assistance, employee attitude, employer – employee reationships plays significant role.

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Literature Review

Sagwa et al

Mediating role of employee outcomes plays a significant role in HRMP and firm performance.

Tehmina Sattar et al

Employee engagement role between job satisfaction and job perofrmance.

Vermeeran B et al

HR practices are directly and indirectly linked to financial, organisational and human resource outcomes.

Ahmed Mohammed Sayed Mustafa & Julian Seymour Gould-Williams

High performance HR practices have positive influence.

Daniel Eseme Gberevbie

Strategic HR practices enhances employee competency.

Rebecca R Kehoe & Patrick M Wright

Strategic HR development practices influence firm level performance.

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Research Objective

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To know the impact of various HRD practices and its impact on predictor (job satisfaction).

2.

To make effectiveness in the decision making process of human resource management.

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Research Methodology

  • Descriptive and inferential statistics were used to test the relationship existing between the variables.
  • Descriptive Statistics includes: Scatter Plot Matrix, Q-Q Plot, Standardized Residuals, Corrgram graph, Correlation Matrix Plot
  • Inferential Statistics includes Multiple Linear Regression Analysis

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Research Methodology

  • Data Sources: Primary and Secondary Data
  • Sample Size: 500
  • Sampling Method/Technique: Stratified Random Sampling
  • Sampling Frame/Unit: Employees from three levels (top, middle, lower) were considered.
  • Sampling Tools: Machine learning algorithm of multiple linear regression analysis
  • Software: R-Programming language.

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Important terminology

  • EC-Employee Compensation
  • CC-Coaching and Counseling
  • RA-Rewards cum Awards
  • EJP-Employee Job Performance
  • PA-Performance Appraisal
  • TD-Training and Development
  • CPD-Career Planning and Development
  • HRD-Human Resource Development

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Exploratory Data Analysis and Interpretation

  • Both train and test data show same behavior with 90% accuracy in the analysis.

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Data Validation Test

  • Questionnaire from respondents was validated with pilot study and data with crone Bach's alpha reliability test.

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Scatter Plot Matrix

All variables show positive relationship towards employee job performance.

All the independent variables show strong relationship with employee job performance.

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Corrgram

Here, almost all variables show positive relationship.

Here, maximum variables showed positive tendency with the job performance.

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Standardized Residuals

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The point 266 is an outlier and will impact the regression value.

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Normal Q-Q Plot

Here we can see that the data is normally distributed .

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Standardized residuals

with fitted value

The scale value shows that all independent variables influence EJP and all points are concentrated in the middle.

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Correlation Matrix Plots

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Employee Job Performance and Employee Compensation

Higher the compensation, higher will be the employee job performance. Almost all variables have shown the positive tendency towards, employee job performance.

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Employee Job Performance and Training and Development

Employee job Performance is positively associated with the training and development.

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Employee Job Performance and Coaching and Counseling

The scatter plot matrix and the coaching & counseling showed positive tendency in the analysis.

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Employee Job Performance and Performance Appraisal

We can conclude that the employee performance depends on the employee performance appraisal.

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Employee Job Performance and Career Planning and Development

The straight line shows neutral tendency, that is, employee job performance is slightly being influenced by career planning and development.

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Conclusion

  • Variables considered exert significant influence.
  • Various graphs used show positive relationship between job performance and variables considered.
  • 90% accuracy shown by data.

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Limitations

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The employee data sets available in the industry are often noisy and sparse.

2.

Statistics are not sufficient to deal with individuals.

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3.

Machine learning is not necessarily the best tool.

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Future Scope

  • Due to its open-source nature and its extreme versatility, R has become the primary tool for statistical analysis and data science.
  • By applying data science to employee data, one can find the right person for the right position
  • Smarter candidate identification and applicant tracking
  • By enhancing employee satisfaction and performance one can reduce employee attrition

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Future Scope

Algorithm is an effective tool to:

  • Source the Right Candidate
  • Enhance Employee Satisfaction
  • Undertake Corrective/Preventive Measures
  • Identify underperforming candidates
  • Predict & Minimize Employee Attrition

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Thank you !

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