A Review of Cases Using A Holistic Capital Model in Relation to the Data-Driven HR Strategy

Abstract

In this paper the reader will be introduced to how Human Capital Analytics can be used in a company to support the leaderships planning and execution of strategy. The paper reviews two cases of companies, which have been found to contain a set of problems impacting their company strategy. Here the goal is to specify how HR can assist the strategic management of a company. From the perspective of a HR Department, Human Capital Analytics is used to analyze how HR can support the overall strategy. This is done by using A Holistic Capital Model. The model is created to view and understand how universalistic Key Performance Indicators can be used to understand the cost of HR. A way to enable HR to evaluate both the direct and indirect connections between variables is sought after by using A Holistic Capital Model. This paper uses those connections to explorer how each of the variables can be calculated and used as a foundation for HR-strategy that can support the overall goals of the company. A Holistic Capital Model is a tool created to help HR get a better understanding of how the cost of HR is influenced by Key Performance Indicators uniquely associated with the role of HR. To facilitate A Holistic Capital Model a matrix model is used to explain the various elements of the HR Department. The matrix model is built upon a holistic understanding of the economical term capital. This perspective allows examination of how capital can be explained by The Financial Capital, The Human Capital, and The Social Capital. Furthermore, the matrix model uses The Company, The Individual, and The Society as units of analysis. This creates a 9-tile matrix where each of the tiles are sought to be explained through theories connected to Financial Economy and Organizational Theory. By examining and understanding each of the matrix tiles it is put forward how HR will be better suited to support the strategy of a company. This is further supported by the conclusion of how the casework demonstrate that it is possible to use HCA to guide HR in its effort to assist the strategic management of a company.