Best Practices in Human Capital Development Essay

gentle capital refers to the course of fertile skills and technical knowledge embodied in labor. legion(predicate) early economic theories refer to it simply as labor, one of three factors of production, and consider it to be a fungible resource homogeneous and easily interchangeable. another(prenominal) conceptions of labor dispense with these assumptions. Todays globalization and competition among companies made companies to select the best practices for compassionate crownwork ontogeny.This query contributes to the Best world not bad(p) incurment Practices that be implemented by the companies and continues with in-depth playing field of its Weakness and Strengths and calculate the production metrics of for each one practice. Accenture adult male upper-case letter victimisation manakin (HCDF) query from HCI (Human with child(p) Institute) shows that Human Capital Development Framework is one of the best Human Capital Development practice in the corporate wor ld. The Accenture HCDF uses four trenchant measurement tiers in arriving at an assessment of an formations benignant capital practices.These tiers reflect the observe inconstants that influence the relationship between a bon tons human capital assets and its financial capital punishment Tier 1, Business results, consists of measures of organisational public presentation (e. g. , traditional financial analyses featuring EVA TM, revenue growth, grocery share and stock transaction). Tier 2, Key performance drivers, consists of measures of intermediate organizational outcomes (e. g. , productivity, quality, innovation and customer satisfaction) often captured on a balanced scorecard.Tier 3, Human Capital Capabilities, consists of the just about flying and visible people-related qualities (including employee attitudes and abilities) that are necessary for achieving critical bank line outcomes. Their influence is felt through primaeval performance drivers. scalawag 2 Tier 4, Human Capital Processes, consists of practices that lead to robust and effective human capital capabilities. Included in this tier are core HR demonstratees (e. g. , competency focussing and performance appraisal) and broader human capital processes such as study and knowledge management.Strengths Individual Development is focused, Growth Oriented, Human alternative Identification and Performance Appraisal. Weakness team up attention is Absent, Production rates and costly. 360-Degree Performance circumspection Feed sanction System As per inquiry 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 best of all(a) available methods for collecting performance feedback.Gone are the days of working hard to impress just one person, now the opinions of all matter, especially if you are in a leadership role (at every take). Every person in th e team is creditworthy for giving relevant, positive and constructive feedback. Such systems too help in identifying leaders for higher(prenominal) level positions in the organization. Senior managers could use this feed back for self development. Sony and Acer are implementing this HR rooster for development of Human Capital. (The Best HR Capital Development Practice, Geetha Sharma 2007)Strengths Motivational, high Retention of Employees, Leadership and amplyer Production rates. Weakness Misunderstanding and Disputes between executives and Managers. rapscallion 3 Knowledge Sharing Adopt a systematic approach to ensure that knowledge management supports strategy. Store knowledge in databases to provide greater access to information posted either by the company or the employees on the knowledge portals of the company. When an employee returns afterward Attending any competencies or skills development program, sharing essential knowledge with others could be made mandatory. gro undbreaking ideas (implemented at the work place) are good to be posted on these knowledge sharing platforms. However, what to break in & how to maintain a Knowledge base requires tardily thinking to avoid clutter. This HR Practice is performed at Google, Inc. and other large companies. Strengths Responsibility of employees, Development in Teams. Weakness Only Innovative Groups are advance leading to inequality. Fair Evaluation System for Employees Develop an evaluation system that clearly links one-on-one performance to corporate business goals and priorities.Each employee should pack well defined account relationships. Self pronounce as a part of evaluation process empowers employees. Evaluation becomes fairer if it is based on the records of periodic rede & 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 manager (for whom this employees work is also important), will add to the blondness of the system.A relative rating of all subordinates reporting to the same manager is another tool for truth of evaluation. Normalization of evaluation is yet another attribute Page 4 Of improving fairness. This is practiced at many companies around the globe with Equal prospect Provider Including HSBC and American Embassy. Performance linked Bonuses Research with SBA, USA on Human Resources Practice pay out fillipes or having any kind of variable compensation plan can be both(prenominal) an incentive and disillusionment, based on how it is administered and communicated.Bonus must 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 souls 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 try Organization Human Capital Development Processes Research with Northern California Human Resources fellowship (NCHRA), Companies should evaluate the Human Capital Development by Estimating the ROI (Return on Investment) with the staff and other functionalities like revenue growth, market share and stock performance. Employee Retention and High fatty nature helps the companies to evaluate the Organizations Human Capital Development. Page 5 Companies should take Staffing as a advantage Center.Companies are spending more than ever on training programs to drive specific strategic initiatives and remediate performance, yet they often fail to demonstrate the business value of their investments. Research with HR Metrics and Development Seminar, 2005 Each metric contains 2 to 5 perf ormance indicators. For instance, employee attitudes metric includes the following indicators Job Contentment (the parting of employees cheery with their job), and Manager Contentment (the percentage of employees satisfied with their manager).References Marcus Buckingham and Curt Coffman, First 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.