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The Roi of Human Capital: Measuring the Economic Value of Employee Performance

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Title: The Roi of Human Capital: Measuring the Economic Value of Employee Performance
by Jac Fitz-Enz
ISBN: 0-8144-0574-6
Publisher: AMACOM
Pub. Date: June, 2000
Format: Hardcover
Volumes: 1
List Price(USD): $29.95
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Average Customer Rating: 5 (6 reviews)

Customer Reviews

Rating: 5
Summary: Highly Recommended!
Comment: Jac Fitz-enz presents a breakthrough approach to measuring your return on investment (ROI) in human capital. This book could have been dull, dry and dusty in someone else's hands, but instead is absorbing and a pleasure to read. Using studies done by the Saratoga Institute - his own facility - and drawing upon the work of other researchers as well, the author places this new methodology in the context of today's business challenges, including e-commerce. He pinpoints satisfaction as the baseline value employees pursue, and shows how you will profit by working toward employee fulfillment. We from getAbstract highly recommend this book to those in human resources, and to managers, executives and entrepreneurs who run their own businesses.

Rating: 5
Summary: Neet to read before talk on HR practice review and goals
Comment: This book is one of the most interesting publication come across. As a BIG 5 Consultant to implement HUman Capital Solutions, its important to have a new world picture for Human Resource. Away from the traditional practices of reporting HR performance and standard set of reports, this book highlights the new views and ideas.

It is worth to have in your bag, when you are going for a HR assignment. It impress the HR professionals...

Rating: 5
Summary: The Human Dimension of ROI
Comment: Perhaps you have already read The 8 Practices of Exceptional Companies. Fitz-enz adds substantially to his international renown with this more recent book in which he suggests all manner of ways to measure the economic value of human capital. In the Preface, he suggests that (in business terms) human capital be described as a combination of factors such as these:

• The traits one brings to the job: intelligence, energy, a generally positive attitude, reliability, commitment

• One's ability to learn: aptitude, imagination, creativity, and what is often called street smarts", savvy (for how to get things done)

• One's motivation to share information and knowledge: team spirit and goal orientation

As Fitz-enz then explains, Chapter 1 takes the first steps toward a methodology for measuring the return on investment (ROI) of human capital. Chapter 2 launches the process of finding the ROI of human capital from an unusual "starting point": rather than begin with process improvement at the lower organizational levels, focus at the highest possible levels on "the goals of the enterprise." Chapter 3 is the "bridge" between the enterprise and the human capital management levels. Chapter 4 brings us to "the drivers of all enterprise success": people." Chapter 5 integrates the three levels (enterprise, process or function, and people), combining them "in one end-to-end system of human capital valuation reporting." Chapter 6 moves to the next level: trending and predicting. Chapter 7 dissects five of the most common human resources and human capital initiatives, demonstrating HOW to find economic value in the workings of each. Chapter 8 reports on two of the longest-term, largest-scale studies of human capital management. Chapter 9 explains what is required for an organization to take a quantum leap" over its competition. Chapter 10 provides a "compilation" of eleven "guiding principles" which serve as "The Foundation Stones of the Human Capital Measurement Pathway." And then in the final chapter, Fitz-enz brilliantly sums up the basic measurement system. Note in particular Figure 11-1 ("Composite human capital scoreboard") which provides an excellent model to guide and inform the efforts of any organization, regardless of its size or nature.

With very few exceptions, an organization's greatest assets do indeed "walk out the door" at the end of each business day. For those who are eager to measure human capital more accurately, who then wish to create for their organization a much greater return on investments in its human resources, this is an absolutely indispensable resource to help achieve those objectives.

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