Human resource management often does not develop human capital to produce higher-value results and increase in worth
Many companies proclaim that their people are their most important asset. But most of the companies administer human resources as employees, rather than managing human capital. Many common human resource methods actually stifle human capital by putting people where they cannot escape. Such devices as organization structures and positions, position or job descriptions, salary scales, career plans, rigid HR administration policies, and organizational assignments tend to fix people in inflexible boxes.
Rule number Eight of the Ten Rules for 21st Century Management is Manage human personnel, capability, and knowledge capital to increase human worth. Result-performance Management (R-pM) enables the company to manage human personnel capital to be ready to produce results, human capability capital needed to produce specific results, and human knowledge capital needed to produce higher value results and, thereby, increase human capital worth.
Human resource administration and development should be converted to human capital management
Human resource management systems and administration methods manage human resources as employees. But, people or human capital are assets that should be utilized to provide the best value to the enterprise, should have some say in how they can increase their worth to the enterprise, should be developed to increase the value they provide and their own worth, and should be rewarded commensurate with their capital worth.
We need to manage human capital to improve their capability to produce higher-value results and thereby increase their capital worth to justify increases in their performance cost. We can then manage our human capital as actual assets and capital of worth for utilization and return on investment, rather than just administering employees.
Result-performance Management (R-pM) develops and manages three classes of human capital as performance solutions to produce results
R-pM provides three classes of human capital:
- Human Personnel Capital: Readiness capital solutions deployed to be ready to produce a set of results as managed
- Human Capability Capital: Production capital solutions deployed to provide a specific capability required by the process in order to produce a specific high-value result
- Human Knowledge Capital: Information capital in specific knowledge solutions for human development and operation to utilize performance solutions to produce specific results
Human Capital Management is responsible for managing personnel capital to keep humans ready to produce routine results, development and deployment of human capabilities when needed to produce high-value results, and development and provision of human knowledge capital that specifically develops and supports the human performance needed to produce results.
Result-performance Management (R-pM) develops needed capabilities to produce result value and increase human capital worth
R-pM follows principles for strong human capital management:
- Focus human capital on results, so that they always know the results expected and how to apply their capabilities to produce results
- Let human capital know the value of their results and how their performance can add value to results
- Let human capital know the relationship between the value added to results produced and their worth to the enterprise as human capital
- Compensate and reward human capital in accordance with their human capital worth
- Analyze and describe the human capabilities to be integrated with the business process to produce difficult high-value results
- Identify high-worth capabilities needed by the enterprise to produce high-value results for specific human knowledge and human capability development
- Develop human knowledge and capabilities as specific performance solutions to produce specific high-value results.
Strategic human resource development develops the capabilities described in the business process to produce high-value strategic results. R-pM manages human capital worth and human performance cost in relationship to the value of results produced, and continually develops improved capabilities to produce higher-value results.
Learn how to convert human resource administration and development to human capital management
Result-performance management enables your corporation to properly organize and manage human capital to be of high worth. Human resource management consultants can employ R-pM for human capital management consulting. Details are provided in the R-pM Toolkit available at a nominal cost from Result-performance Management.com
