In any organization, it is analyzed that there are multiple tangible and intangible sources of competitive leads and human capital is considered one of the most important assets/sources to be studied and maintained for the positive growth and development of an organization. There are six effective ways through which we can measure human capital as a strategic asset.
Focus On The Strategic Impact Of Human Capital.
Human capital is known as an elusive concept, and management is not used to thinking about the cost of hiring and training. Managing human capital with respect to the focus on the strategic impact means managing their performance behaviors.
Beware Of Human Capital Alchemy.
In a traditional way, the employees are considered as the money makers. There are some simple ways through which human capital alchemy could be noticed and considered. The most popular ones are hiring, rewards, development, and training.
Need To Measure Both HC Levels And Relationships.
It is known that the human capital affects the company in an indirect way. The balanced scorecard terminology is one of the best ways to measure the relationships and the HC levels. Through this strategy, the employee’s role in the firm’s performance could be analyzed.
Recognize The Limits Of Benchmarking.
Looking at external pressure and benchmarks for the measurement of human capital would explain that every organization has the same implementation system and strategy. Everyone in management would be required to follow this new perspective to properly recognize the limitation of the benchmark affecting human capital.
Don’t Start With The Measure.
Whenever a meeting starts, the managerial post requires a list of measures they require to keep a follow-up. They want it to be firmly implemented from start to end. No such list exists for an ongoing improvement in a company or a project.
Think In Terms Of The Human Capital “Architecture.”
Managing and measuring human capital is a challenge because of lots of confusion. Everyone is required to use a new perspective, and this should start with a central role in human capital architecture. While thinking architecture is helpful in the creation and management of human capital.
Works Cited
Becker, Brian E., Mark A. Huselid, and Dave Ulrich. “Six key principles for measuring human capital performance in your organization.” Business and Society Review 1 (2002): 71-75.
Fitz-Enz, Jac. ROI of human capital: Measuring the economic value of employee performance. AMACOM Div American Mgmt Assn, 2000.
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