02 human capital investments and returns sandy
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Study Human Capital Management-University of Indonesia-TRANSCRIPT
Human Capital Investments and Returns
Sandy Wibisono
0706306522
Tujuan Pembahasan
• Mengembangkan sebuah model untuk menggambarkan bagaimana dan kenapa orang – orang membuat Human Capital
Investments
•
Tujuan Pembahasan
• 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
The Way Human Capital InvestmentWorks
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.
Commitment to the Organization
ATTITUDINAL PROGRAMMATICLOYALTY -
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
Engagement in the Job
COMMITMENT
ENGAGEMENT
HUMAN CAPITAL
INVESTMENT
Hubungan antara Commitment , Engagement terhadap HCI
PERFORMANCE
Commitment - Performance
Programmatic
Loyalty Based
Attitudinal
High
high
Low
LowAmount of Commitment
Per
form
ance
Foc
us
Return on Investment
ability
effort
behaviortime
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.
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
FIN
AN
CIA
L R
EW
AR
DS G
RO
WT
H O
PP
OR
TU
NIT
Y
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 SecurityPromotion /
Growth
Lowest Highest
Highest
Employee Ranking of Importance
Sup
ervi
sor
Ran
king
of
Im
port
ance
to E
mpl
oyee
s
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 and Relational ROITransactional
Relational
Job Organization
Informal Learning
Promotion/ Advancement
Intrinsic Job
Elements
Base Pay
Formal Training
formal Recognition
Informal Recognition
BenefitPerformance –
Based Compensation
Thank You