Introducing the Organizational Analytics

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Organizational Analytics

Introducing the Organizational Analytics

Andreas Raharso Ph.D

Chief Data Scientist



What is organizational analytics (OA)?

Organizational Analytics is the process or set of processes that links

people and organization to the creation of value through information

– information generated through applying statistics, computer

programming, organizational behaviour & human resource principles

and decision science methods.

Organizational Analytics aims to identify problems, inefficiencies and

ineffectiveness that have arisen in the organization to then develop

optimal or near optimal solution/s for resolving them.

OA = Decision Science x (Organizational Behaviour + Human Resources Principles) x Computer Programming x Statistic



Why organizational analytics (OA) is powerful?

Evidence

Based

People

Focus

Technology

Method (hard) Human (soft)

Statistic and

Decision science

Procedure or formula

for solving a human

capital problem based

on evidence

OR

Organizational

Algorithm

Machine

Data Science

Computer Programming

Organizational Behaviour and

Human Resources Principles



Why we need an Organizational Algorithm ?

Internet, mobile devices, and social media

applications has made employees able to

understand about their employer in great

detail. The employees can research not only

their employer business performance but

also its HR practices and policies. While

employees have this level of clarity, the

employers have far less ability to understand

their employee with equal translucence

(Asynchronous Transparency phenomena)

This phenomena has made HR related

decision increasingly difficult to make as the

employees change faster than employers

could anticipate or company always playing

catch-up with their employees.



Three levels of Organizational Analytics

Short term Long term

Time Horizon

Impact

High

Low Operational Analytics

Tactical Analytics

Strategic Analytics

Structure

Organization

Design

Talent Mgt

Performance Mgt

Engagement

Recruitment

Compensation



Summary: Benefits of Organizational Analytics

• Align people investment with business goals

• More efficient resource allocation in Human

Capital

Reduce cost: minimize non-effective

people investment

Improve revenue: invest on critical talents

and roles



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Introducing the Organizational Analytics