HR as a Source of Shareholder Value

2181 WordsFeb 28, 20139 Pages
HR as a Source of Shareholder Value Companies with the best people management deliver nearly twice as much value to shareholders as their average competitors - Watson Wyatt Consultants What is HRM ? • Human resource management is the management of an organization's workforce, or human resources. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture, and ensuring compliance with employment and labour laws. In circumstances where employees desire and are legally authorized to hold a collective bargaining agreement, HR will typically also serve as the company's primary liaison with the employees' representatives. The human…show more content…
HUMAN CAPITAL MANAGEMENT • Human capital management (HCM) is an approach to employee staffing that perceives people as assets (human capital) whose current value can be measured and whose future value can be enhanced through investment. • An organization that supports HCM provides employees with clearly defined and consistently communicated performance expectations. • Managers are responsible for rating, rewarding, and holding employees accountable for achieving specific business goals, creating innovation and supporting continuous improvement. Two competencies required for Human Capital Management 1. Professional HRM Capabilities-these are related to the delivery of traditional HR activities such as recruiting ,selection and compensation 2. Business related capabilities reflect the understanding of business and implementation of competitive strategy. SPECIFICALLY… • HR must focus on business level outcomes rather than HR level inputs • HR must become a strategic core competency rather than a market follower. • Strategic competencies are more important than functional competencies. • The most important missing element in HR functional expertise is a systems perspective. Architecture for Intangibles Level 1 Area of focus Keep promises Action outcome Build reputation among stakeholders for delivering what you promise to deliver. Define growth
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