The human capital vision is founded on the human capital theory and attempts to turn the theory into a concrete statement of success. Figure 2-2 presents an example.
Several assumptions lie beneath the vision statement:
• Leading measures are defined by performance, not competencies. Competencies are an important means to an end and should be measured and managed as such; but success is industry-best performance, not industry-best people.
• Success is measured against industry benchmarks or primary competitors. Being world-class is ideal, but it is not required to deliver business results. Burger King’s performance in site selection must be better than McDonald’s; it does not need to be better than Marriott’s.
• It is often, but not always, possible to compare performance of non management roles to similar roles in competitor companies (e.g., sales, customer service). It may be more difficult to com- pare performance of some leaders to their competitor peers. Can you compare cross-company performance of sales executives or product development leaders? Probably yes, but it might be more difficult to compare the performance of internal communications managers, retail store managers, or sales managers.
• When performance to competitors cannot be assessed, measure year-over-year changes. Note that performance metrics will not be perfect. Start with a “B” and improve until you get an “A.” If you wait for an A to begin, you might never do so.
Source : Bradley W Hall, PhD. The new human capital strategy : improving the value of your most important investment—year after year. AMACOM. 2008
1 comment:
This is good, but could you suggest me anything regarding a good Human Resource Management. Any recommendation?
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