Home Page Icon
Home Page
Table of Contents for
Three. What Can We Measure?: The Current State of the Art
Close
Three. What Can We Measure?: The Current State of the Art
by Ph.D. Jack J. Phillips
Investing in Your Company’s Human Capital: Strategies to Avoid Spending Too Little—or Too Much
Copyright
Acknowledgments
Foreword: The Fascination of Management
Investing in an Unknowable
Where to Start?
Structuring for Investment
Backwards Investing
America’s Cultural Defect
Commitment and How to Get It
Note
Introduction
The Expanded Role of Human Capital
Struggles of the Human Resources Function
The CFO’s Perspective
The Last Major Source of Competitive Edge
Barriers for Change
Focus of the Book
Who Will Profit from Reading This Book?
Notes
One. How Much Should We Invest in Human Capital?: Five Strategies for Decision Making
1. Let Others Do It
The Basic Strategy
Case Studies
Forces Behind this Strategy
Cost of Competent Human Capital
The Nature of Human Resources Development
Recruiting Fully Competent Employees
Sources
Tactics
Disadvantages
Advantages
Employing Temporary and Contract Workers
Tactics
Disadvantages
Advantages
Outsourcing Functions
Targets for Outsourcing
Tactics
Disadvantages
Advantages
Summary
Notes
2. Invest the Minimum
The Basic Strategy
Case Studies
Forces Driving the Strategy
The Cost of Turnover
The Impact
The Total Cost
Identifying and Supporting the Minimum
Wages
Benefits
Employee Support System
Tactics
Disadvantages
Advantages
Summary
Notes
3. Invest with the Rest
The Basic Strategy
Case Study
Forces Driving the Strategy
Human Capital Benchmark Measures
Benchmarking Issues
The Elusive Best Practice
Benchmarking Sources
Global/National Data
Creating a Custom Benchmarking Project
Determining What to Benchmark
Building the Benchmarking Team
Identifying Benchmark Partners
Collecting Benchmarking Data
Analyzing the Data
Distributing Information to Benchmarking Partners
Initiating Improvement from Benchmarking
Disadvantages
Advantages
Summary
Notes
4. Invest Until It Hurts
The Basic Strategy
Case Studies
Rationale for the Strategy
Signs of Over-Investing
Forces Driving this Strategy
Union Demands
Retention
The Happy Employee Dilemma
Competitive Strategy
Quick Fixes
Fad Chasing
The Analysis Dilemma
We Can Afford It
Disadvantages
Advantages
Summary
Notes
5. Invest as Long as There Is a Payoff
The ROI Strategy
Case Studies
When to Use This Strategy
Forces Driving Change
Profiles of Organizations Using This Strategy
The ROI Methodology
The Evaluation Framework
The ROI Process Model
Evaluation Planning
Collecting Data
Isolating the Effects of the HR Program
Converting Data to Monetary Values
Tabulating the Cost of the HR Program
Calculating ROI
Identifying Intangible Benefits
Reporting
Operating Standards and Guiding Principles
Implementation
Disadvantages
Advantages
Summary
Notes
Two. Why Does This Matter?: The Importance and Value of Human Capital
6. What We Know from Logic and Intuition
Can We Do It Without People?
The Technology Revolution
Automate, Automate, Automate!
Gurus and More Gurus
People Are Necessary
Stock Market Mystery
A Brief History of Interest in Intangible Assets
Increased Interest in Intangible Assets
Definitions and Categories
Accounting Dilemma
Superstar Phenomena
QUALCOMM
General Electric
Honda
Southwest Airlines
USAA
SAP
Some Characteristics of Superstars
The Best Idea Will Fail Without Proper Talent and Execution
Human Capital as the Last Major Source of Competitive Advantage
Good and Great
The Great Places to Work
Most-Admired Companies
A Need for More Research
Summary
Notes
7. What We Know from Macrolevel Research
Index of HR Effectiveness
Early Approaches
Phillips/Saratoga Institute Study
Profit-Center Approach
The Gallup Studies
Meta-Analysis
Results
Implications
The Service-Profit Chain
Sears Research
Current Use
Huselid-Becker Studies
Watson-Wyatt Studies
Deloitte & Touche Studies
Knowledge Asset Management Studies
Other Studies
Disadvantages
Advantages
Summary
Notes
8. What We Know from ROI Analysis
ROI Progress and Status
Progression of ROI Across Sectors
ROI Networks
Global Expansion
Paradigm Shift
Basis for Acceptance
ROI Is Here to Stay
The Challenges of Developing a Credible ROI Process
HR Practitioners
Senior Managers/Sponsors/Clients
Researchers and Evaluators
Criteria for an Effective ROI Process
ROI Applications for Human Capital Areas
Specific Measures
Specific Case Studies
ROI Standards
ROI Best Practices
Barriers to ROI Implementation
Costs and Time
Lack of Skills and Orientation for Human Resources Staff
Faulty Needs Assessment
Fear
Planning and Discipline
False Assumptions
Benefits of ROI
Measuring Contribution
Setting Priorities
Focusing on Results
Earning the Respect of Senior Executives and Sponsors
Altering Management Perceptions of Human Capital
Summary
Notes
Three. What Can We Measure?: The Current State of the Art
9. Current Human Capital Measures
Innovation
Creativity
Employee Attitudes
Employee Satisfaction
Organizational Commitment
Employee Engagement
Workforce Stability
Turnover and Termination
Tenure and Longevity
Employee Capability
Experience
Knowledge
Learning
Competencies
Educational Level
Human Capital Investment Levels
Human Resources Department Investment
Total Human Capital Investment
Leadership
360° Feedback
Leadership Inventories
Leadership Perception
Productivity
Unit Productivity
Gross Productivity
Workforce Profile
Job Creation and Recruitment
Productivity Versus Job Growth
Importance of Job Creation and Job Growth
Recruitment Sourcing and Effectiveness
Recruitment Efficiency
Compensation and Benefits
Compensation
Employee Benefits
Variable Compensation
Employee Ownership
Fair Employment, Compliance, and Safety
Complaints and Grievances
Charges and Litigation
Health and Safety
Employee Relations
Absenteeism and Tardiness
Work/Life Balance
Summary
Notes
Four. What is the Executive’s Role?: Why and How Top Management Should Be Involved
10. Creating and Using the Human Capital Scorecard
Progress and Opportunity
The Current Status
The Mandate
Metric Fundamentals
Interest in Scorecards
Selecting the Measures That Matter
Scorecard Options
Workforce Measurement Scorecard
Basic IPO Scorecard
The Balanced Scorecard Process
The Causal Chain Scorecard
The Value-Added Scorecard
Human Resources Process Scorecard
Human Capital Monitor
Best-Practice Scorecard
Transactional Benchmarking
Using the Scorecard
Select the Measures
Set the Target
Monitor the Data
Conduct a Gap Analysis
Identify/Select Action/Solution
Implement Action/Solution
Forecast the Value
Monitor the Progress
Show the Value
Repeat the Process
Summary
Notes
11. Executive Commitment and Support
The Management Support Dilemma
Why Executives Fail to Support Human Resources
Improving Commitment and Support
Definitions
Increasing Commitment
Increasing Management Support
Improving Reinforcement
Improving Management Involvement
Key Strategy: Developing Partnerships with Managers
Steps to Develop a Partner Relationship
Key Principles
Key Strategy: Manager Workshop on Human Capital Management
Workshop Issues
Workshop Content
Workshop Features
Top Management Participation
Impact of the Workshop
Key Strategy: Tying Bonus Plans with Human Capital Measures
Summary
Notes
A. Self-Test: How Results-Based Are Your Human Resources Programs?
A Survey for Managers and Executives
Scoring and Interpretation
Analysis of Scores
B. CEO Commitment Checklist
CEO Commitment Checklist Interpretation of Results
About the Author
Search in book...
Toggle Font Controls
Playlists
Add To
Create new playlist
Name your new playlist
Playlist description (optional)
Cancel
Create playlist
Sign In
Email address
Password
Forgot Password?
Create account
Login
or
Continue with Facebook
Continue with Google
Sign Up
Full Name
Email address
Confirm Email Address
Password
Login
Create account
or
Continue with Facebook
Continue with Google
Prev
Previous Chapter
8. What We Know from ROI Analysis
Next
Next Chapter
9. Current Human Capital Measures
Part Three. What Can We Measure?: The Current State of the Art
Add Highlight
No Comment
..................Content has been hidden....................
You can't read the all page of ebook, please click
here
login for view all page.
Day Mode
Cloud Mode
Night Mode
Reset