Week 2 Project

Human Capital; Metrics; and Value

The leaders of the organization should have the ability to gauge whether a department within the organization is a liability or an asset; however, the leaders may not recognize the most efficient methods of managing human assets and the correlation to the organization’s strategic goals. The leaders will consider the more traditional route when attempting to determine the value of the employees (wages, benefits, turnover, etc.).

Based upon this assessment, the expenditures may outweigh employee worth. When leaders believe the employees are a liability to the organization, layoffs occur and departments are restructured. This will temporarily address the financial issues the organization may be experiencing due to a recession, reduction in revenue, or losing the competitive advantage because of poor strategic planning. In the textbook, there is a general list of metrics that can be used to forecast the expenses linked with each employee; these expenses will definitely have an impact on the organization’s bottom line. Attempting to resolve financial costs of the organization in short term can dramatically affect the long-term goals of the organization.

It is imperative that the organization has the most qualified employees to operate at an exceptional level. What does it take for the HR professional and the leaders to ensure that the employees are strategically aligned with the mission of the organization? How can the leaders and HR devise a plan of accountability to focus on all aspects of the organization? How can the leaders adequately measure the value each employee brings to the organization? How can the leaders of the organization recognize the value of the HR department? How can the HR professional effectively use workforce analytics? These are critical questions to examine in order for the leaders to employ the best business strategies.