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Andrew Mayo, Professor of, argues that what distinguishes human capital and
HCM from HRM is the emphasis on the value of people and what they
produce, rather than a focus on the HR function itself.
HCM, unlike HRM, is about assessing the impact of people management
practices and the contribution of people to bottom-line performance.
The development of human capital might develop as follows:
assessing the effectiveness of HR
The specific set of measures are less important than the process of measuring and
the uses for the information gathered.
Focus on internal rather than external reporting, as the latter is impossible without
solid internal information.
There are three core principles behind effective HCM:
insist on systems thinking get the 'right' facts focus on value.
15th Annual Meeting of the Arab Network for HRM/D
Sana’a – Yemen, 1-3 December 2007 6
Guide for HC Measurement and Reporting
The purpose of this Guide is to help organizations move forward with their
internal HC measurement and reporting, by providing practical information
and setting out a clear process to follow. This process has five key stages,
and each section of the Guide will cover each of these stages in turn.
Step 1 – Setting human capital management in context
This section defines what HC is and its links to the business strategy,
and provides an overview of the frameworks and models necessary
HCM and measurement.
Step 2 – Getting started: gathering and collating the data
This section provide guidance on the nature and sources of relevant
information for HC reporting, what measures and categories might be
reported on, and how this information can be collated to build a HC
measurement platform.
Ancillary systems,
Employee surveys.
Data elements:
HRIS and payroll data on the work force: demographics; status; job history;
availability; compensation; mobility; organization and management
Complementary workforce data: performance management; training and
development; skills and competencies; education; pre-employment; succession
planning
Perceptual data: employee survey; exit interviews; executive interviews.
THANK YOU
Dr. Abdelfattah ABUQAYYAS
Telecom Consultant
CITC - KSA
Telephone: +966 1 461 8076
Fax: +966 1 461 8206
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