By Harry Scarbrough and Juanita Elias.This report examines the intangible asset of the knowledge, skills and initiative possessed by employees. Although most organizations recognize that employees are their most valuable asset, little is done to evaluate just how valuable it is. The authors argue that it is possible for organizations to measure and manage human capital using methodology designed to suit their own needs and goals. They quote a number of high profile case studies of private sector organizations that are making progress in relation to managing and measuring their human capital. They also show that the human capital perspective provides a new rationale for the role of the HR function, where HR is no longer viewed as a cost centre, but rather an asset provider.
Published by the Chartered Institute of Personnel and Development.