Human Investment Management

This book presents a thought-provoking case for looking at human resource management from an entirely different perspective. In the modern world, organizations have to optimally manage resources to achieve the best results, and the best way to do this is to identify humans as instruments of investment and not as resources. Humans use resources in an activity. Managing people, as a subject, was first studied as part of personnel management, and became known as human resource management (HRM) in the early 80s. However, the basic principles remained largely unchanged. The book argues that it is time that HRM is replaced by human investment management (HIM), where the entire approach of employee management in an organization shifts gears to human investment in activities. In this approach no human is considered bad in relation to an organization, if selected appropriately, and trained well. Everyone is productive, though the returns may differ. Humans can be invested in areas where they are best or can be trained to be the best according to various factors. Unlike any other investment instruments, humans' value can be continuously upgraded for higher returns. Thus the core of HIM is to maximize the return from each employee as an individual or as a member of the group with minimum expenditure and effort in him or her. HIM can therefore reengineer and replace HRM slowly and steadily at the desired pace where maximum attention is paid to employee investment for improved results. This is unlike HRM, which primarily focuses on employee relations. Turning around HRM to HIM will be the first step in inclusively aligning strategic human resource management with the overall human management. As such, HIM should be seen as a process by which the asset or capital value of individual humans can be increased by turning them into capital humans, an entirely different outlook from the oft-used term human capital.

This book presents a thought-provoking case for looking at human resource management from an entirely different perspective. In the modern world, organizations have to optimally manage resources to achieve the best results, and the best way to do this is to identify humans as instruments of investment and not as resources. Humans use resources in an activity. Managing people, as a subject, was first studied as part of personnel management, and became known as human resource management (HRM) in the early 80s. However, the basic principles remained largely unchanged. The book argues that it is time that HRM is replaced by human investment management (HIM), where the entire approach of employee management in an organization shifts gears to human investment in activities. In this approach no human is considered bad in relation to an organization, if selected appropriately, and trained well. Everyone is productive, though the returns may differ. Humans can be invested in areas where they are best or can be trained to be the best according to various factors. Unlike any other investment instruments, humans’ value can be continuously upgraded for higher returns. Thus the core of HIM is to maximize the return from each employee as an individual or as a member of the group with minimum expenditure and effort in him or her. HIM can therefore reengineer and replace HRM slowly and steadily at the desired pace where maximum attention is paid to employee investment for improved results. This is unlike HRM, which primarily focuses on employee relations. Turning around HRM to HIM will be the first step in inclusively aligning strategic human resource management with the overall human management. As such, HIM should be seen as a process by which the asset or capital value of individual humans can be increased by turning them into capital humans, an entirely different outlook from the oft-used term human capital.

Human Capital Management (HCM) has recently been described as a high-level strategic issue that seeks to analyze, measure and evaluate how people policies and practices create value. Put simply, HCM is about creating and demonstrating the value that great people and great people management add to an organization. This unique book describes how HCM provides a bridge between human resource management and business strategy. It also demonstrates how organizations can use the concepts of human resource management and the processes involved to enhance the value they obtain from people while continuing to meet their aspirations and needs. Baron and Armstrong explain how to achieve these objectives using various approaches including describing the concept of HCM and how the process works, discussing its application in numerous areas within an organization and examining the role of HR in HCM and the future of the concept. It also contains a toolkit which organizations can use to develop their own HCM policies and practices.

Studienarbeit aus dem Jahr 2011 im Fachbereich BWL - Personal und Organisation, Note: 1,0, AKAD University, ehem. AKAD Fachhochschule Stuttgart, Veranstaltung: Issues in International Human Resources Management (PER10), Sprache: Deutsch, Abstract: In a rapidly changing business environment organizations are increasingly realizing that people are the most critical con-tributors to success. In order to compete in the twenty-first century, Human Resources professionals have to focus on various tasks and challenges. Managing knowledge workers becomes a new challenge. Companies that want to cope with the challenges have to invest in the development of the skills of their employees. The tools and methods for identification and transfer of knowledge can be grouped under the term of "Skill Management". But can Skill Management actually contribute to the entrepreneurial success? What are the tasks and challenges that have to be faced by a modern HRM? Why are people the most important asset of an organization, and what are currently important requirements to attract, engage, and retain knowledge workers?

Are people really an organisation's most important asset? Not necessarily; some may be liabilities - but others are the most important drivers of value that an organisation has. But...who are they? How do you know? How can you maximise the value they have and the value they provide? Finding the answers to questions like these is what human capital management is about. Whether public or private, successful achievement depends first on the capability of people, and secondly on their commitment and productivity. Andrew Mayo's Human Resources or Human Capital? discusses how you can ensure the most effective management of these value creating assets. The first part of the book also shows how to create an integrated framework of measures that can become an integral part of the organisation's performance management - and how companies have done this in practice. Part Two shows how to do this strategically and successfully, and how HR can be a serious and credible 'Business Partner', enabling managers to achieve their goals through their people and adding real value to all the stakeholders of the organisation.

Human Capital Management Standards is a comprehensive guide to the BSI and ISO frameworks for people management. Providing internationally agreed definitions and best practice guidance, it offers a foundation for sustainable people management and development practices in organizations. Covering everything from organizational governance, workforce planning, diversity and inclusion to learning and development, this book explores the key areas of people management throughout the employment life cycle, from initial hire to the time people move on from the organization. There is also coverage of additional business standards such as those related to occupational health and safety as well as the implications of implementing standards in a globalized and interconnected organizational context. Human Capital Management Standards will allow people professionals and managers in organizations of all sizes and types to develop and implement effective people policies and processes based on robust research to create a supportive organizational environment for a more productive workforce. This book also includes essential coverage of the standards assessment process and tips and advice on how to achieve successful accreditation. With case studies from organizations that have made HR interventions based on these standards and a glossary to explain the language of standards, this is an indispensable guide for HR professionals, managers and standards specialists in all organizations.

A Logical, Proven Framework for Understanding the Economic Value of Human Resources Investments How to choose Human Resources investments that deliver optimal strategic value—and eliminate those that don’t Best-practice metrics and analysis techniques for talent management, performance management, health and wellness programs, and much more Investing in People introduces a breakthrough approach to Human Resources (HR) measurement that systematically aligns HR investments with organizational goals and helps make HR the true strategic partner it needs to be. Wayne F. Cascio and John W. Boudreau show exactly how to choose, implement, and use metrics to improve decision-making, optimize organizational effectiveness, and maximize the value of HR investments. You’ll master crucial foundational principles such as risk, return, and economies of scale—and use them to evaluate investments objectively in everything from work/life programs to training. Cascio and Boudreau also introduce powerful ways to integrate HR with enterprise strategy and budgeting and for gaining commitment from business leaders outside the HR function. If you truly want “a seat at the table”—or if you want to keep the one you have—you’ll find this book utterly indispensable. Free software available online You don’t need to be a math wizard to get results from Investing in People! Visit www.shrm.org/publications/books to access software that automates virtually all of this book’s key formulas and calculations. Foreword xi Acknowledgments xiii About the Authors xiv Preface xv Plan for the Book xvii Chapter 1: Making HR Measurement Strategic 1 Chapter 2: Analytical Foundations of HR Measurement 21 Chapter 3: The Hidden Costs of Absenteeism 43 Chapter 4: The High Cost of Employee Separations 67 Chapter 5: Employee Health, Wellness, and Welfare 99 Chapter 6: Employee Attitudes and Engagement 125 Chapter 7: Financial Effects of Work-Life Programs 151 Chapter 8: Staffing Utility: The Concept and Its Measurement 171 Chapter 9: The Economic Value of Job Performance 195 Chapter 10: The Payoff from Enhanced Selection 223 Chapter 11: Costs and Benefits of HR Development Programs 245 Chapter 12: Talent-Investment Analysis: Catalyst for Change 271 Appendix A: The Taylor-Russell Tables 285 Appendix B: The Naylor-Shine Table for Determining the Increase in Mean Criterion Score Obtained by Using a Selection Device 297 Index 309