Best Practices in Human Capital Development Essay

mankind capital resuscitates to the stock of productive skills and technical knowledge embodied in labor. M whatever early economic theories refer to it simply as labor, one of three factors of doing, and consider it to be a fungible resource homogeneous and easily interchangeable. Other conceptions of labor grapple with these assumptions. Todays Globalization and competition among companies made companies to select the high hat practices for humankind detonating device development.This look into contributes to the lift emerge Human neat breeding Practices that ar implemented by the companies and continues with in-depth study of its Weakness and Strengths and calculate the production metrics of each practice. Accenture Human Capital Development Frame put to work (HCDF) Research from HCI (Human Capital Institute) shows that Human Capital Development Framework is one of the scoop out Human Capital Development practice in the corporate world. The Accenture HCDF uses i v distinct measurement stages in arriving at an assessment of an organizations benignant capital practices.These tiers reflect the winder variables that influence the relationship in the midst of a companys human capital assets and its financial act Tier 1, Business results, consists of measures of organizational performance (e. g. , traditional financial analyses featuring EVA TM, receipts growth, market share and stock performance). Tier 2, Key performance drivers, consists of measures of mediocre organizational outcomes (e. g. , productivity, quality, innovation and customer satisfaction) often captured on a match scorecard.Tier 3, Human Capital Capabilities, consists of the most ready and visible wad-related qualities (including employee attitudes and abilities) that are necessary for achieving critical business outcomes. Their influence is felt through key performance drivers. page 2 Tier 4, Human Capital Processes, consists of practices that pencil lead to robust a nd effective human capital capabilities. Included in this tier are core HR processes (e. g. , competency management and performance appraisal) and broader human capital processes such as learning and knowledge management.Strengths Individual Development is focused, Growth Oriented, Human Resource Identification and Performance Appraisal. Weakness team up Management is Absent, Production rates and costly. 360-Degree Performance Management Feedback System As per Research with HR Capital Management and Development, Report, 2007 This system, which solicits feedback from seniors (including the boss), peers and subordinates, has been increasingly embraced as the top hat of solely available methods for collecting performance feedback.Gone are the long time of working hard to impress only one person, now the opinions of all matter, especially if you are in a leadership role (at any level). Every person in the team is responsible for giving relevant, supportive and constructive feedbac k. Such systems also help in identifying leaders for high level positions in the organization. Senior coach-and-fours could use this feed back for self development. Sony and Acer are implementing this HR tool for development of Human Capital. (The Best HR Capital Development Practice, Geetha Sharma 2007)Strengths Motivational, higher(prenominal) memory board of Employees, Leadership and Higher Production rates. Weakness Misunderstanding and Disputes between executives and Managers. Page 3 familiarity Sharing Adopt a systematic approach to ensure that knowledge management supports strategy. Store knowledge in databases to provide greater ingress to information posted either by the company or the employees on the knowledge portals of the company. When an employee returns after Attending any competencies or skills development program, share-out essential knowledge with others could be made mandatory.Innovative ideas (implemented at the work place) are good to be posted on these k nowledge sacramental manduction platforms. However, what to store & how to maintain a Knowledge base requires deep mentation to avoid clutter. This HR Practice is performed at Google, Inc. and other large companies. Strengths office of employees, Development in Teams. Weakness Only Innovative Groups are encourage leading to inequality. Fair Evaluation System for Employees Develop an evaluation system that clearly links individual performance to corporate business goals and priorities. individually employee should have well defined reporting relationships. Self rating as a part of evaluation process empowers employees. Evaluation becomes fairer if it is based on the records of periodic counseling & achievements of the employee, tracked over the year. For higher objectivity, besides the immediate boss, each employee should be screened by the next higher level (often called a Reviewer). Cross functional feedback, if obtained by the immediate boss from another(prenominal) manager ( for whom this employees work is also important), will add to the fairness of the system.A relative rating of all subordinates reporting to the same manager is another tool for fairness of evaluation. Normalization of evaluation is yet another holding Page 4 Of improving fairness. This is practiced at many companies somewhat the globe with Equal Opportunity Provider Including HSBC and Ameri fucking Embassy. Performance think Bonuses Research with SBA, USA on Human Resources Practice Paying out bonuses or having any kind of variable compensation plan can be both an incentive and disillusionment, based on how it is administered and communicated.Bonus essential be designed in such a way that people understand that there is no payout unless the company hits a certain level of profitability. Additional criteria could be the teams success and the individuals performance. Never pay out bonus without measuring performance, unless it is a statutory obligation. Companies like Nokia and GM are implementing this practice. Strengths High Productivity and Determination among Human Resources. Weakness Cost Effective to the Company.Metrics to evaluate Organization Human Capital Development Processes Research with Northern calcium Human Resources affiliation (NCHRA), Companies should evaluate the Human Capital Development by Estimating the ROI (Return on Investment) with the round and other functionalities like revenue growth, market share and stock performance. Employee Retention and High Productive nature helps the companies to evaluate the Organizations Human Capital Development. Page 5 Companies should take Staffing as a Profit Center.Companies are expense more than ever on training programs to drive specific strategic initiatives and improve performance, yet they often fail to demonstrate the business tax of their investments. Research with HR Metrics and Development Seminar, 2005 Each metric contains 2 to 5 performance indicators. For instance, employee attitudes m etric includes the following indicators Job Contentment (the fate of employees satisfied with their job), and Manager Contentment (the percentage of employees satisfied with their manager).References Marcus Buckingham and Curt Coffman, offset Break All the Rules (New York Simon and Schuster, 1999). Accenture High Performance Workforce Study, 2002-2003. HR Capital Management and Development, Report, 2007. HR Metrics and Development Seminar, 2005. Human Resource Capital Institute, New York The Best HR Capital Development Practice, Geetha Sharma 2007. Northern California Human Resources Association (NCHRA), Website for HR Managers.