Managing human resources has undergone a trajectory of change from its
evolution to the understanding of people analytics. The integration of People Analytics
(PA) into Strategic Human Resource Management (SHRM) is reshaping the way
organizations optimize workforce potential and achieve strategic goals. This paper
explores the synergies between PA and SHRM, emphasizing the transformative role of
data-driven decision-making in addressing contemporary human resource challenges.
The theoretical underpinnings and methodological techniques for exploring the HR
investments and performance linkages based on a technologically adaptive skill
orientation are promising for bringing in a new perspective on micro-managing the
challenges of the dynamic environment. Predictive analysis based on empirical
estimates is where research is focusing and exploring, with a focus on longitudinal
intra-firm research. This work aims to investigate the essential components that people
analytics teams need in order to improve organizational performance through a
narrative literature review. The findings and results of the study reveal that predictive
analytics has the potential to significantly enhance strategic HR management by
bolstering theoretical, contextual, and practical insights. Subsequent research can
enhance academic understanding and guide effective implementation. Using datadriven decisions that require interdisciplinary collaboration among management, data
science, information systems, and organizational psychology strengthens HR's position
as a strategic partner.
Keywords: Organizational performance, People analytics, Strategic human resource management.
