Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/308753 
Year of Publication: 
2024
Series/Report no.: 
WWZ Working Paper No. 2024/13
Publisher: 
University of Basel, Center of Business and Economics (WWZ), Basel
Abstract: 
This study empirically analyzes the relationship between the application of HR analytics and the assignment of decision-making authority in Swiss establishments. From a theoretical standpoint the direction of this relationship is ex-ante unclear as opposing forces are at work simultaneously. While HR analytics can reduce the local information advantage or even take over decision-making processes, acting as a centralizing force, it can also generate additional local information and dampen the hidden action problem, resulting in the decentralization of decision-making processes. The empirical results, relying on doubly robust ATE estimations, are in line with a decentralizing force of HR analytics. More precisely, a comprehensive measure of decision rights as well as operational and strategic decisions are more decentralized in establishments that apply HR analytics. Overall the findings suggest that Swiss establishment combine the use of HR analytics with employee empowerment and do not use it to create a dystopian work environment as feared by proponents of digital taylorism.
Subjects: 
HR analytics
people analytics
decision-rights assignment
authority in organizations
doubly robust ATE estimation
JEL: 
L22
M12
M50
M54
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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