Impact of Human Capital Analytics (HCA) and Moderating Effect of People Strategy on Strategic Human Resource Management Functions and Organizational Performance in Insurance Industry of Sri Lanka

Abstract

The aim of this study was to investigate the impact of organizational human capital analytics and moderating effect of people strategy on strategic human resource management functions and organizational performance and its applications in Sri Lankan insurance companies considering the use organizational human capital analytics to manage people. The study sample consisted (29) Licensed Insurance Companies (LICs) individual employees of leadership and supervisory functions of insurance companies operating in Sri Lanka, where the questionnaire was developed to gauge the views of the respondents consisting of (576) employees. After a process of data analysis and hypothesis testing using SPSS package and AMOS, the study found that 98% of Excel sheet based primary people analytics are used in organizations furthermore 77% of organizations lack centralized HCM data analytics for management decision making process. The importance and benefits and t he possibility of relying on the organizational human capital analytics in strengthening the application and evaluation of realistic outcomes of strategic human resource management functions are of paramount importance. The study recommends that design of appropriate organizational Human Capital Analytics, will add value as well as application of new knowledge as prerequisites for firm’s higher performance.