What Value HR?: Measuring Human Resources Roi

Most organisations champion that people are their greatest asset. But how do they really view their investment in HR activities? In many cases, they simply budget for these activities as an expenditure item. Today, managers need to value these activities and their potential return on investment to the business. This management report will help managers: - describe the relevant components of financial statements - prepare financial tools for measuring return on investment - create a template for measurement to use in their own organisation - identify the steps involved in implementing ROI techniques. One reason that measuring the value of HR has not been a standard business practice to date is because it has been seen as simply too difficult. Traditional definitions of capital do not adequately value an organisations true wealth. While organisations continue to spend large sums of money upgrading plant, equipment and infrastructure, there is still a prevailing paradigm that people are viewed as an overhead rather than as an asset. The notion of the 'intellectual capital' that is brought to an enterprise is largely not quantified. Financial statements such as the profit and loss statement and balance sheet do not adequately correlate HR measures and performance improvement with bottom-line results. This report introduces ways to consider making links between Human Resources management, Human Asset management and the bottom line. What Value HR? encourages organisations to consider a broader view of human resources management and human capital as a value added function. It incorporates an extensive literature review combined with original concepts and philosophies developed by the author. Case studies in this management report show how some organisations have successfully put a value on HR. Companies in the case studies section include Investors in People (UK), Dow Chemical Company, BHP and Australia Post.

Table of Contents:
Tables and figures Preface Acknowledgments About the author Introduction Overview of chapters Chapter 1: Why it is important to value HR Chapter 2: What is the value of the HRM role? Chapter 3: Distinguishing between strategic and non-strategic HR for value creation Chapter 4: Benchmarking and best practice issues in putting a value on HR Chapter 5: Towards a new paradigm in HR measurement Chapter 6: HRD measurement Chapter 7: Measurement of return on investment (ROI) in HRD Chapter 8: Linking performance improvement to HR Chapter 9: Interpreting financial performance from an HR value perspective Chapter 10: Human asset management and value analysis Chapter 11: Human capital and intellectual capital Chapter 12: Risk management and cost-benefit issues in putting a value on HR Chapter 13: Developing and implementing HR value processes in your organisation Chapter 14: Conclusion: Establishing an HR value implementation process

About the Author :
Judith Watson MBA, BA (Hons) is the Principal Consultant of Distinctive Edge Consulting and Training Services. Judith has a unique ability to design quality HR materials and takes a hands-on role in getting various stakeholder groups to work collaboratively towards organisational goals. She has developed and sold a program on selling the benefits of diversity to numerous organisations, including major multinational companies such as Coca-Cola and Colgate Palmolive. Judith has consulted to a variety of companies in addition to international, state and local governments. In addition to a diverse and successful consulting career, Judith has published numerous articles on Human Resources Management. Judith also conducts a series of public HR certificate courses through the Australian Institute of Management.