Download The ROI of Human Capital: Measuring the Economic Value of by Dr. Jac Fitz-enz PDF

By Dr. Jac Fitz-enz

With staff rate usually exceeding forty in keeping with cent of company rate, measuring the worth of this human capital is key. This reseource finds the best way to do it and is helping managers make certain how you can make investments such a lot successfully in human efficient strength.

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Peter Drucker It is axiomatic that all resources should be directed to serving the enterprise’s purpose. This purpose can be, should be, and most often is expressed through a combination of economic and human goals. It often starts with a statement of corporate management’s vision, values, and mission. Then it moves to the financial goals of seeking an exceptional rate of return on shareholder investments. Finally, there is obeisance to serving the interests of employees and the communities in which the corporation operates.

If we do not pay attention, one day we may find that contingent workers who have no company loyalty hold many of our core competencies. They can go at a moment’s notice and leave us incapable of competing. It would How to Measure Human Capital’s Contribution to Enterprise Goals 41 be like the story of the camel who was allowed to put his nose into the tent during a sandstorm. After the nose came the head, and no one resisted. Then came the shoulders, trunk, and finally the hindquarters. At that One day we may find that point, the original inhabitant found contingent workers who have no loyalty to us hold himself out in the storm.

Intellectual Capital- Learning Organization Figure 1-3. Fifty years of management panaceas. Human Capital 15 Human Capital Relationships Process and Culture Intellectual Property INTELLECTUAL CAPACITY Figure 1-4. Intellectual capacity pathway. Productivity Quality Service FUNCTIONAL LEVEL Competitive Advantage Goals Market and Economic ENTERPRISE LEVEL 16 The ROI of Human Capital Human Capital 17 will be moving in the right direction. Strategy and tactics must fuse the four perspectives into a broad-based synergistic solution that can be economically valued.

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