International Journal of Human Resource & Industrial Research

International Journal of Human Resource & Industrial Research

Print ISSN : 2349–4816

Online ISSN : 2349–3593

Frequency : Monthly

Current Issue : Volume 13 , Issue 1
2026

LEVERAGING HR ANALYTICS AND AI FOR STRATEGIC DECISION-MAKING IN THE MANUFACTURING SECTOR

Akshay Noel Lourd N

Akshay Noel Lourd N, Assistant Professor, Department of Commerce, Loyola College, Chennai 600034, India.

Published Online : 2026-03-12

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ABSTRACT

This paper addresses the application of Human Resource (HR) analytics combined with the methods of artificial intelligence (AI) and data science to improve the process of strategic decision-making in the manufacturing industry. With the growing use of the data-driven approach in industrial organizations, the necessity of an effective workforce management has become urgent. The study sees the application of predictive modeling, machine learning algorithms, and data visualization tools to enhance vital HR activities including recruitment, performance appraisal, retention of employees, and planning of workforce. The research provides an AI-based HR analytics model to aid in predictive decision-making with the help of primary data sources, surveys, and interviews, as well as secondary sources. The results have shown that the organizations with the use of HR analytics have a better operational efficiency, employee retention, and alignment of HR strategies with the business goals. In spite of the difficulties that were associated with data quality, integration, and ethics, the paper concludes that HR analytics offers manufacturing companies a strong competitive edge in their effective human capital management strategies.

Keywords: HR Analytics, AI, Data Science, Manufacturing, Decision-Making, Workforce Management, Predictive Modeling