Human Capital Perspective (Traditional View)

1. Human capital expenses are considered costs.
2. The HR function is perceived as a support staff.
3. HR is involved in setting the HR budget.
4. Human capital metrics focus on cost and activities.
5. Human capital metrics are created and maintained by HR alone.
6. There is little effort to understand the return on investment in human capital
7. Human capital measurement focuses on the data at hand
8. Human capital measurement is based on what GE and IBM are measuring.
9. HR programs are initiated without a business need connected to them.
10. Overall reporting on human capital programs and projects is input focused.

Source : Investing in your company’s human capital : strategies to avoid spending too little—or too much .Jack J. Phillips.2005

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