HR ANALYTICS AND KPIS AS A TOOL FOR MANAGEMENT DECISIONS AT THE TOP MANAGEMENT LEVEL

Abstract

This article focuses on HR analytics and key performance indicators (KPIs) as tools that assist top managers in making management decisions. It traces the evolution from the early ideas of Frederick Taylor's scientific management and Elton Mayo's human relations school , through Robert Kaplan and David Norton's "balanced" (but still financial) scorecard model, to a strategic management model that incorporates non-financial indicators, confirming the textbook idea of the importance of human capital as a company's strategic resource. It also demonstrates that understanding HR KPIs, combined with HR analytics methods, allows for linking HR strategy to financial performance. The article also examines various levels of analytical maturity and target timetables—from the principles of creating strategic HR indicators and quantitative analysis to approaches for integrating employee data with corporate reporting. It's important to emphasize that HR analytics is directly relevant to restructuring, talent management, talent pool development, and organizational optimization. At the same time, the risks facing the server, both in terms of data quality and ethical issues related to handling personal information, are considered. Finally, the essential role of systematically implementing HR analytics at the senior management level is emphasized. This not only significantly improves the quality of strategic decisions and helps improve efficiency, but also creates sustainable competitive advantages.