Human Capital Investments and Returns Sandy Wibisono 0706306522

Tujuan Pembahasan Mengembangkan sebuah model untuk menggambarkan bagaimana dan kenapa o ra ng – orang membuat Human Capital Investments

Mengembangkan sebuah model untuk menggambarkan bagaimana dan kenapa o ra ng – orang membuat Human Capital Investments

Tujuan Pembahasan Memperoleh keuntungan atas investasi mereka

Memperoleh keuntungan atas investasi mereka

Human Capital : The Components

ABILITY KNOWLEDGE SKILL TALENT BEHAVIOR EFFORT TIME HUMAN CAPITAL ?

DEFINITION

TOTAL HUMAN CAPITAL INVESTMENT (HCI) = [ABILITY + BEHAVIOUR] X EFFORT X TIME Equation ? Performance

TOTAL HUMAN CAPITAL INVESTMENT (HCI) = [ABILITY + BEHAVIOUR] X EFFORT X TIME

The Way Human Capital Investment Works

COMMITMENT ENGAGEMENT HUMAN CAPITAL INVESTMENT Hubungan antara Commitment , Engagement terhadap HCI

Commitment to the Organization Komitmen muncul dari sebuah emosional atau ikatan hubungan intelektual individu dengan organisasi. Komitmen termasuk mendukung / menerima tujuan dari organisasi, keinginan yang kuat untuk menjadi anggota dan tahu sama tahu untuk menolak jejak investasi lainnya.

Komitmen muncul dari sebuah emosional atau ikatan hubungan intelektual individu dengan organisasi.

Komitmen termasuk mendukung / menerima tujuan dari organisasi, keinginan yang kuat untuk menjadi anggota dan tahu sama tahu untuk menolak jejak investasi lainnya.

Commitment to the Organization ATTITUDINAL PROGRAMMATIC LOYALTY - BASED i.e : Dedikasi kepada organisasi Bekerja keras dibandingkan dengan orang yang tidak mempunyai attitudinal commitment Membuat orang tinggal pada organisasi dikarenakan mereka tidak bisa keluar - Take years to vest - “ Rasa sebagai kewajiban” Motivasi yang kuat kehadiran yang konsisten dedikasi untuk tujuan organisasi

i.e :

Dedikasi kepada organisasi

Bekerja keras dibandingkan dengan orang yang tidak mempunyai attitudinal commitment

“ Rasa sebagai kewajiban”

Motivasi yang kuat

kehadiran yang konsisten

dedikasi untuk tujuan organisasi

Engagement in the Job

COMMITMENT ENGAGEMENT HUMAN CAPITAL INVESTMENT Hubungan antara Commitment , Engagement terhadap HCI PERFORMANCE

Commitment - Performanc e Programmatic Loyalty Based Attitudinal Amount of Commitment Performance Focus High high Low Low

Return on Investment ability effort behavior time The payback earned on human capital invested The rewards required to elicit or maintain human capital investment ROI

4 factors to invest discretionary human capital Instrinsic job Fulfillment – factor inherent in the job itself and its composite tasks. Intrinsic elements include the challenge of the work; the degree to which the job has interest, permits creativity, and requires the use of valued abilities; and the amount of personal satisfaction afforded by the job. Opportunity for Growth – chance to increase abilities and thereby add to the individual’s store of human capital. Recognition for accomplishments – Acknowledgment from peers and superiors of and individual’s contribution to the organization Financial Rewards – Receiving various forms of compensation and benefots, especially those based on the worker’s performance and productivity.

Instrinsic job Fulfillment – factor inherent in the job itself and its composite tasks. Intrinsic elements include the challenge of the work; the degree to which the job has interest, permits creativity, and requires the use of valued abilities; and the amount of personal satisfaction afforded by the job.

Opportunity for Growth – chance to increase abilities and thereby add to the individual’s store of human capital.

Recognition for accomplishments – Acknowledgment from peers and superiors of and individual’s contribution to the organization

Financial Rewards – Receiving various forms of compensation and benefots, especially those based on the worker’s performance and productivity.

ROI Fall Into Four Categories Interest Challenge Variety Freedom Control Creativity Fun Social Relations Values Gratification Base Pay Incentives Bonuses Commissions Retirement plans Equity Health and welfare benefits Vacation Work / Life Support Advancement Leadership opportunities Additions to human capital: education, formal training, informal learning Appreciation Award Professional Recognition Company Recognition Industry Recognition Community Recognition Prestige Respect INSTRINSIC FULFILLMENT RECOGNITION FINANCIAL REWARDS GROWTH OPPORTUNITY

Interest

Challenge

Variety

Freedom

Control

Creativity

Fun

Social Relations

Values

Gratification

Base Pay

Incentives

Bonuses

Commissions

Retirement plans

Equity

Health and welfare benefits

Vacation

Work / Life Support

Advancement

Leadership opportunities

Additions to human capital: education, formal training, informal learning

Appreciation

Award

Professional Recognition

Company Recognition

Industry Recognition

Community Recognition

Prestige

Respect

Manager Misunderstanding What Worker Value Feeling “ in on this” Appreciation Interesting Work Good Wage Help with Problems Tactful Discipline Personal Loyalty Good Working Conditions Job Security Promotion / Growth Lowest Highest Highest Employee Ranking of Importance Supervisor Ranking of Importance to Employees Manager overemphasize Manager underemphasize

“ What does success mean to you?” 52 % 30 % 22 % 21 %

ROI – Investment Model Workplace Environment and Job Execution Factors Commitment Engagement Human Capital Investment Performance ROI Human Capital Job Satisfaction

Another Way to Look at ROI Transactional ROI – involve an arm’s – length exchange between the company and the individual. Some from of agreement – stated, or unstated, but understood nonetheless – typically governs the tendering of the reward in exchange for services provided. Relational ROI , in contrast, depends – intuitively enough – on relationships. Compared with transactional ROI, it is less tangible , less contractual , more implicit , and more dependent on interaction among the people in an organization. Relational ROI seldom show up on financial statements.

Transactional ROI – involve an arm’s – length exchange between the company and the individual. Some from of agreement – stated, or unstated, but understood nonetheless – typically governs the tendering of the reward in exchange for services provided.

Relational ROI , in contrast, depends – intuitively enough – on relationships. Compared with transactional ROI, it is less tangible , less contractual , more implicit , and more dependent on interaction among the people in an organization. Relational ROI seldom show up on financial statements.

Transactional and Relational ROI Transactional Relational Job Organization Informal Learning Promotion/ Advancement Intrinsic Job Elements Base Pay Formal Training formal Recognition Informal Recognition Benefit Performance – Based Compensation

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