BUSINESS

Managing Human Capital

Managing Human Capital

Executive Summary

The concept of human capital (HC) has evolved in recent years to be a unique feature of the areas of human resources (staffing strategy and practices to optimize performance) to become part of the management of each of the leaders of the organization. The expert John Dooney, of the Society of Human Resources of the United States, states that: "The current administration of the current human management includes how organizations as a whole manage and measure their human capital. To Dooney, human capital management is comprehensive, as it includes human resource practices and labour, plus workforce management strategies that contribute to organizational performance (GROBLER, 2002). The important distinction is that human capital goes far beyond the role of Human Resources, to cover the overall strategy of the organization and personnel management practices needed to optimize performance and drive value creation. The Human Capital belongs to all business leaders and is part of each and every one of the members of the organization. In this regard it is recommended to follow four steps to give life to the measurement process:

Include human resource executives in developing business strategy and product (or service) company

From Human Resources to recruit foreign leaders to help develop and support metrics Human Capital

Collaborate with managers to ensure that measurements are linked to the strategic goals of the unit

Collect and report on the processes performed

To carry out the measurement of human capital management must recognize their critical importance to business results. The first relates to the focus and planning that ensures proper alignment of people with organizational strategy, and secondly, monitoring, analysis and improvement based on measurement. Within the three levels are measured according explains the specialist:

Performance Indicators

Measure the efforts of people and efficiency activities in the area of ??human talent. The aspects under which referenced are: volume or activity coverage, compliance and cost the same.

Indicators of achievement

Managers make performance measurement processes human capital management. They are linked to the following references: results of the process, quality of services, internal customer satisfaction.

Impact indicators

In them lies the measurement of the contribution of human capital to the effectiveness of the organization, i.e. the effect it generates (BREWSTER, 2003). As references are considered indicators that affects business on human capital as it can be: quality, productivity, timely delivery, external customer satisfaction and operational costs.

Cost Factor Human Capital HCCF

HCCF = (salaries and benefits) + (Cost of temporary labour) + (Absenteeism Costs) + (turnover costs)

Human Capital Value Added HCVA

HCVA = Income (Expenses Fixed - HCCF) / Total Workforce Payroll Full Time and Temporary

Return on Investment in Human Capital HCROI

HCROI = Income (Expenses Fixed - HCCF) / HCCF

Introduction

In an environment of constant change, making the most of each at all levels is the key to a sustainable competitive advantage. Strategies, processes and technology are not strong enough to produce satisfactory results. These are the people who accept, adopt, and provide easy change that create long-term ...