Measure (HCM) Human Capital Management
"Many people recognise intuitively that how they are managed influences their behaviour, and in turn their employer's performance. Better measurement of people management will help to clarify the precise link with value creation."
Professor Sandra Dawson, Director of the Judge Institute of Management Studies, University of Cambridge
Our analysis considers the influence of the following elements on the workforce when management :
- takes unknown risks
- usually moves only when it is too late
- denies mistakes
- considers leadership resides only in top management
- considers that only short-term results matter
- distributes power through relationships, not business needs
- does not explain where the business is going or the contribution expected of the employees
- does not adequately anticipate the future
- does not encourage cross-functional working and defends departmental results
- exhausts staff chasing short-term performance issues without any real advance in work
- does not value people for their own sake
- uses the appraisal system to demand evidence of performance adding little to the business
- selects people based on 'who you know'
- develops and communicates strategy badly
- distributes resources based on power and influence rather than to create and deliver value to the customer
staff resentment, stress, poor productivity and lack of innovation :
with help from the staff, these factors can become neutral : with further help the staff will become HAPPY@WORK®!
HAPPY@WORK® ANNUAL HCM INDEX
Human Capital Management
What is Human Capital Management (HCM)?
An approach to people management that focuses on the practices with most impact on overall organisational performance.
In November 2003 a Task Force set up by the DTI reported on "Accounting for People" (AfP).
A HAPPY@WORK® analysis of the observations of the staff concerning the above factors provides a measure of the Human Capital Management of the organisation.
When an analysis is carried out annually, we can measure HCM using the 15 outputs to compute the overall level achieved by the organisation and the improvement or deterioration in terms of points from the previous year as shown below. It is important to note that not only do you get an annual measurement but the analysis also identifies those areas that require improvement and this will stimulate changes that are required to make progress. Such improvement will be accomplished using facilitated workshops to engage the staff and change the process from within. Thus such annual analysis provides a never ending opportunity for continual improvement.
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