Data mining techniques for better decisions in human resource management systems

This paper presents the role of data mining in Human Resource Management Systems (HRMS). A deep understanding of the knowledge hidden in Human Resource (HR) data is vital to a firm's competitive position and organisational decision making. Analysing the patterns and relationships in HR data is quite rare. The HR data is usually treated to answer queries. Because HR data primarily concerns transactional processing ? getting data into the system, recording it for reporting purposes ? it is necessary for HRMS to become more concerned with the quantifiable data. We show how data mining discovers and extracts useful patterns from this large data set to find observable patterns in HR. The paper demonstrates the ability of data mining in improving the quality of the decision-making process in HRMS and gives propositions regarding whether data-mining capabilities should lead to increased performance to sustain competitive advantage.