In today’s business world, there’s an abundance of procedures for managing core decisions in HR – without taking the “human value” out of human resources. We’ll go a little deeper in History to see how data-driven Processes impact organizations, perhaps a perfect demonstration of the importance of analytics in HR functions.
Back in the day, 1980 Motorola engineers developed Six Sigma to detect manufacturing defects. This was the beginning of the implementation of Processes to drive productivity and improve the quality of commercial products. And guess what? It worked like magic! The data-driven process quickly moved from the manufacturing floor to the management floor, where it was adopted into improving all functions of the engineering company.
Fast forward to the modern business environment, many companies – through the HR department have adopted the Six Sigma technique to improve internal systematic approaches. From products, operations, to waste elimination, and total quality management, among other critical functions of the Sigma strategy – a technique that ensures total commitment to quality in organizations.
Process Administration Approaches
Six Sigma is a powerful system that many companies find useful and have integrated it into their data processes. It works by using statistical analysis to streamline production and services and eliminate flaws and errors. It first developed by Motorola in the 1980s. We can adopt some of these strategies in HR as core values to implement and impact business performance.
- Lean – Elimination of waste to improve the overall employee performance
- Total Quality Management – Improves quality and productivity, mainly through the use of technology, data, and communication.
- Business Process Management – Focuses on managing processes as opposed to tasks to improve performance outcomes.
Here’s why these functions fit into the HR.
Any business process, data-driven, or otherwise applied without judgment takes out the human touch. For procedures to function efficiently, you need to find the right blend to merge these core values into HR.
The HR Processes
HR is tasked with monitoring the efficiency of employees’ productivity at the workplace. Some activities can be accounted for, like how many people attended a CSR function, for example. But others, such as performance and employee engagement, are not easy to track, and HR has not fully utilized the use of data to manage such intricacies.
Technology offers plentiful ways to assist HR deal with the inherent prejudices of human decision-makers—by utilizing advanced tools to score and review résumés, for instance— require a human touch, and this is necessary to make HR reliable and, well, human.
The role of HR relies on numerous processes, including performance management, benefits enrollment, onboarding procedures, dispute resolution processes, and so forth. It is no doubt that HR’s core mandate is to align companies’ and employees’ interests. But let us also not forget that HR presents gigantic processes without which companies can barely function effectively.
In this context, Six Sigma comes into play, whose mandate is to focus on setting business objectives, data collection, and analyzing performance results to reduce waste and enhance productivity. However, an over-reliance on such data-driven approaches would likely reduce employees, push away the workforce, and disengage people with high-value skills when they’re not cataloged in your processed data.
Fortunately, HR can balance processed data and make sound judgment when making hiring decisions or when conducting performance management. The most crucial part is to find the right balance between the two elements. For you to adopt Six Sigma, it isn’t so much about compiling data for case study use – but more about the consistency of optimum performance, deeper insights, and critical decision making in the HR department.
Enhanced HR Data Storage Software
The HR department collects a massive amount of personalized and sensitive data about employee performance and the organization as a whole. The use of integrated systems dramatically improves the accuracy and quality of data storage. It relives a considerable amount of pressure on the HR department when retrieving or updating such a colossal amount of information.
Standardized processes such as the HRMS offer the right amount of relief with its reliability and the safety of encrypted systems. The future of technology in HR requires future experts to ponder on improving the following existing systems:
- Find a user-friendly HR system with easy distribution
- Merge HRMS with existing alternative software
- Ease the transition from legacy to HR automated software
How do you define a sound, consistent, and efficient process?
Not easy to answer at all, but the fundamentals of HR processes is to recognize the value of structured business systems, but you can make better decisions with credible analysis processes for better outcomes
Six Sigma, for instance, and similar processes lead to sound decision making and produce measurable results. You’re to identify potential problems. A good example is when you discover a typical hiring process takes about 30 days, but you realize managers completed the hiring process in 60 days. Now that’s a shocker.
You can only solve a problem when you understand its source, and then you solve it. This is evidence-based only when you know a problem can you find a workable solution—and collect substantial evidence is how to do it. But factual data does not imply that you make a judgment before you understand why the slugging behavior, in this scenario.
You don’t want to separate both systems. The two are linked. The human resource – (human side) decides how to weighs all facets of the issue, and the data-driven process considers the standard methods used in such instances.
Processes, Data, and Judgment
How can HR combine disciplined processes, sound data, and human judgment? Is this possible?
It is actually.
First, you’ve got to understand the strengths and weaknesses of all the components in play. A process can enforce uniformity and productivity, but it can be too rigid to accommodate unpredictable situations.
Data offers insights but may be misused or misconstrued. Humans, on the other hand, can act on emotion and use bias to make significant decisions. That is by no means to weaken the human in the HR procedures, but we must also realize the instances we are faced with complex situations where the technology may not work.
Make changes where appropriate because you cannot program the entire organization. You need human anchors – you need human judgment, and therefore best practices should act as guidelines rather than hard rules.
Make room for exceptions.
The Impact of HR Processes
Data enables us to focus on the key issues and for the responsible people to use the information provided appropriately for proper accountability. Bear in mind that a process is as good as the data fed into it. Management can use data to provide falsified information as opposed to what’s best for the organization. That is a classic example of bad management, not inaccurate analytics.
For example, when HR analyzes turnover, it’s critical to evaluate specific employees leaving the organization rather than the overall sum of departures. Companies have employees that come and go, but you need positive turnover—the right resignations and the right people staying. You do not want your high yielding employees to go, and the less productive ones are staying. Use analytics as a basis to solve organizational issues.
On parting remarks echo the human voice in solving problems through the HR to strengthen the processes and offer the best possible conclusions when making decisions. Combine knowledge and your sixth sense. Instincts maybe 75% because you don’t want to knock it off completely, but you can contain it. Processes help make sound decisions and eliminate any doubt in managing HR functions.