Week 5 Project

HR Development Programs and the Economic Environment

After three months of searching for a new position, Jack came up with an idea. While reviewing job postings on Indeed.com, he decided to combine his training knowledge with HRD and assist organizations in understanding the value of human capital, employee selection process, the importance of strategic planning, and other invaluable concepts to strengthen an organization’s competitive advantage.     

As the economic environment is constantly changing and cannot always be predicted, organizations must have the foresight to plan ahead. One of the main objectives is to understand the actual value of human capital. Organizations will quickly lay off employees when experiencing �nancial challenges. This is the easiest way to cut costs. Without precise calculations, just imagine that there are a hundred employees and �fty employees are laid off. The leaders will immediately recognize savings in the payroll budget. But if you dig a bit deeper, you may want to ask, “are there truly any savings?”

Here are some questions to ponder in terms of investing in HRD programs and employees and the repercussions of layoffs:

Are employees forced to work overtime to compensate for the decline in production due to layoffs?

What is the cost to hire and train new employees?

How do layoffs affect employee morale?

What are the alternatives to employee layoffs? 

How much can an organization save by engaging employees through training and development? 

There are many factors to consider, and this is why HRD is considered important. HRD programs should be designed to improve employee (human capital) and the organizational performance. Proactive strategies implemented by the HR professional will help circumvent the series of unfortunate events, which were experienced by Jack and his staff. The HR professional has the opportunity to learn from the past and show where investments in HRD programs will have the most signi�cant impact, assist leaders in decision making and also bringing total value to the organization.

The Value of Human Capital

Reference Kwon, D. B. (2009). Human capital and its measurement. Paper presented at the Third OECD World Forum on “Statistics, Knowledge

and Policy” Charting Progress, Building Visions, Improving Life, Busan, Korea, Oct. 27–30, 2009. Retrieved from

http://www.oecd.org/site/progresskorea/44111355.pdf

Dr. Kwon (2009) stated the following:

Two Types of the Human Capital:

The �rst is to utilize human as labor force ‟related to economic added-value that is generated by the input of labor force as other production factors such as �nancial capital, land, machinery, and labor hours.

The other is that the human capital can be viewed as the target of investment through education and training. The human capital expansively includes the meaning of “human as creator” who frames knowledge, skills, competency, and experience originated by continuously connecting between “self” and “environment.” (p. 5)

From the South University Online Library, read the following:

A Review of the Role of Human Capital in the Organization  (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp? sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx? direct=true&db=edselp&AN=S1877042816311338&site=eds-live)

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Human Capital Management

Signi�cance of Human Capital Management

Human capital management is vital to the overall success of any organization. The HR professional must realize that this function is an important part of the recruitment process, employee training and development, employee management, and ensuring that quality talent is retained. The leaders must also recognize the employees as an asset and invest in them. Without a sound management process, the organization will not achieve its goals or maintain the competitive advantage.

Additional Materials

From your course textbook, Process Metrics and Measurement Complete Self-Assessment Guide, review the following chapters:

Criterion #1: Recognize

Criterion #2: De�ne

Criterion #3: Measure

Criterion #4: Analyze

Criterion #5: Improve

Criterion #6: Control

Criterion #7: Sustain

From the South University Online Library, review the following articles:

The Effects of Staf�ng and Training on Firm Productivity and Pro�t Growth Before, During, and after the Great Recession (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp? sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx? direct=true&db=ofm&AN=96070381&site=eds-live)

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HRD Challenges Faced in the Post-global Financial Crisis Period—Insights from the UK (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp? sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx? direct=true&db=bth&AN=100838109&site=eds-live)

How Organizational Adaptations to Recession Relate to Organizational Commitment (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp? sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx? direct=true&db=pdh&AN=2012-04404-002&site=ehost-live&scope=site)

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