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For example, if an organization collects data about worker satisfaction and stores the data without acting on it, it is meaningless. However, is the data collected is accurate and well analysed, it can be of great help to the organization.
There are numerous reasons as to why the organization needs to collect HR data. The major reason for collecting data is managerial decision making and action. The management needs to decide on various issues that affects workers and organization success and cannot do so without accurate information. It needs to know what competitors are doing in respect of employees in order to gain competitive advantage; whether workers are satisfied and what can be done to improve their morale in order to increase productivity and other aspects such as absenteeism, labor turnover, and performance levels. Another reason is for legal compliance. The law requires organizations to comply with labor laws such as laws against discrimination, termination and redundancy. To avoid legal litigations for claims of unfair dismissal or termination, the organization needs to collect and record all information regarding workers such as pay, performance levels and disciplinary actions taken to act as evidence in such cases. To avoid discrimination cases, it needs to record information about age of workers, sex, race, religion, disability, pay levels and also recruitment procedures. This data informs the organization whether it is complying with the law and can also be used as evidence in discrimination cases. The health and safety legislation also requires records of accidents, exposure to harzadous substances and training provided to be kept.
There are various types of data collected within the organization to support HR practices. Quantitative data such as employee turn over, absenteeism, vacancy forecasts and sales targets are crucial for HR in manpower planning, performance management and
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(“CIPD Diploma (Human Resource Practice Course ) Assignment - 1”, n.d.)
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