CONCLUSIONS

Chapter XVI - Data Mining for Human Resource Information Systems
Data Mining: Opportunities and Challenges
by John Wang (ed)
Idea Group Publishing 2003

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All organizations collect data on employees to utilize in administrative tasks such as payroll processing and benefit enrollment. The use of the data beyond administrative purposes can provide the basis for a competitive advantage by allowing organizations to strategically analyze one of their most important assets their employees. In order to use this data for strategic decision-making, organizations must be able to transform the data they have collected into useful information. When dealing with large sets of data, this transformation can be a challenge for organizations. Data mining provides an attractive opportunity that has not been thoroughly explored for human resource information systems. The application of data-mining techniques to human resource information systems requires organizational expertise and work to prepare the system for mining. In particular, a datamart for HR is a useful first step. Further, organizations must be aware of legal implications of decisionmaking based on personal employee information. With proper preparation and consideration, HR databases together with data mining create an opportunity for organizations to develop their competitive advantage through using that information for strategic decisionmaking.

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