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Challenges in Measuring HR Assets

The document discusses 4 key challenges in measuring HR: 1. The traditional accounting system treats human capital as an expenditure rather than an asset. 2. Developing an HR strategic architecture that links broader HR systems to individual functions and desired employee behaviors. 3. Creating linked HR systems to support high performance work systems. 4. Aligning performance measurement with the implementation of business strategies.

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neera Singh
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69 views8 pages

Challenges in Measuring HR Assets

The document discusses 4 key challenges in measuring HR: 1. The traditional accounting system treats human capital as an expenditure rather than an asset. 2. Developing an HR strategic architecture that links broader HR systems to individual functions and desired employee behaviors. 3. Creating linked HR systems to support high performance work systems. 4. Aligning performance measurement with the implementation of business strategies.

Uploaded by

neera Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Challenges of Measuring HR

Module 1

Dr. Neera Singh


Transition from Physical to Intellectual
Capital
Tangible Assets Intangible Assets
• Readily Visible • Invisible
• Rigorously Quantified • Difficult to quantify
• Parts of the Balance Sheets • Not tracked through accounting
• Assessment based on assumptions
• Investments produces known returns
• Cannot be bought or imitated
• Can be duplicated
• Appreciates with purposeful use
• Has finite applications • Has multiple application with value reduction
• Best Managed with ‘scarcity mentality’ • Best managed with ‘abundance mentality’
• Best leveraged through control • Best leveraged through alignment
• Can be accumulated and stored • Dynamic ,short self life when not in use

Dr. Neera Singh


1st Challenge
Traditional Accounting System :

The traditional format shows the Human Capital as the expenditure ,


Salaries are depicted as the expenditure .
Assets are : infrastructure etc.
Which creates are problem for the Human Resource

Dr. Neera Singh


HR strategic Architecture (2nd Challenge
This consist of :
Resulting Employee
Behaviors

Broader HR
Systems

Sum of HR
Functions

Dr. Neera Singh


HR Functions :
This is a challenge as we find few

HR Professionals with strategic competiveness . Out of 300 large firms


a research was done the average level of technical proficiency was 35%
Higher than the average level of strategic HRM proficiency

Dr. Neera Singh


HR Systems (3rd Challenge )

• Developing the linked HR Systems for HPWS ( High


Performance Work System )

Dr. Neera Singh


Strategic Employee Behavior
Developing the strategic focus that can bring a change in employee
Behaviour .

Quality Consciousness in Employee in case of Six Sigma Implementation

Dr. Neera Singh


Alignment of HR ( 4th Challenge )

• Aligning Performance Measurement with


Strategy Implementation

Dr. Neera Singh

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