Human asset management

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Human asset management (HAM) is the practice of managing people, usually within an organisation, as assets (or human capital). It can be seen as an alternative to human resource management treating people as an enduring asset rather than a resource to be consumed. [1] Human asset management can include the functions of recruitment, onboarding, retention, development, culture, career management, mobility, succession planning, talent management, performance management, employee administration and legal issues.

Contents

Definition

Human asset management covers several interrelated and to some degree overlapping concepts, that individually and in combination affect competitiveness and performance. This includes competency profiling, development planning, talent asset management, strategic workforce planning, performance management, recruitment and on-boarding. Short-term and long-term corporate performance may be positively influenced when individual and overall competencies match requirements to execute the strategies. [2] [3] [4] [5]

History

Developments

Human asset management is an evolution from the old terms like human resource management and human capital management. Many organization defined people as ‘resources’. In HAM, employees are not regarded or managed as a ‘disposable resource’. [6] The importance of relating with an employer was highlighted by Quelch and Jocz. [7] The first discussion of the concept can be traced back to 2001, when Andrew Mayo raised the idea that: The concepts of human assets and human capital are complementary. It is the intrinsic worth of our people that comprise the human capital available to us, and at the same time that worth is a value-creating asset [8]

Use in business schools

After Andrew Mayo Human Asset Management as a term was first documented and used towards a wider audience by Sandeep Sander, CEO, SanderMap, in a presentation at the Human Resources Management Forum in Genoa, Italy, in October 2002. It was also in the same period part of video dialogue between Professor John Quelch, then Dean at London Business School, now Professor at Harvard Business School and Sandeep Sander.

Professor Andrew Mayo states in ‘The human value of the enterprise’ that “Every person is an individual, not just another ‘head’. They bring a different level of present and potential value to their current role and their organization”. [9] This point of view was further emphasized by Prahalad and Ramaswamy (2004, p138), when they state that “…core competencies are unique skills that transcend individual business units, are deeply embedded in the organization, are hard for competitors to imitate, and are seen by customers as creating value”.

Related Research Articles

Individual capital, the economic view of talent, comprises inalienable or personal traits of persons, tied to their bodies and available only through their own free will, such as skill, creativity, enterprise, courage, capacity for moral example, non-communicable wisdom, invention or empathy, non-transferable personal trust and leadership.

Human capital or human assets is a concept used by economists to designate personal attributes considered useful in the production process. It encompasses employee knowledge, skills, know-how, good health, and education. Human capital has a substantial impact on individual earnings. Research indicates that human capital investments have high economic returns throughout childhood and young adulthood.

Intellectual capital is the result of mental processes that form a set of intangible objects that can be used in economic activity and bring income to its owner (organization), covering the competencies of its people, the value relating to its relationships, and everything that is left when the employees go home, of which intellectual property (IP) is but one component. It is the sum of everything everybody in a company knows that gives it a competitive edge. The term is used in academia in an attempt to account for the value of intangible assets not listed explicitly on a company's balance sheets. On a national level, intellectual capital refers to national intangible capital (NIC).

Human resources (HR) is the set of people who make up the workforce of an organization, business sector, industry, or economy. A narrower concept is human capital, the knowledge and skills which the individuals command. Similar terms include manpower, labor, or personnel.

Marketing management is the organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of a firm's marketing resources and activities.

Human resource management is the strategic and coherent approach to the effective and efficient management of people in a company or organization such that they help their business gain a competitive advantage. It is designed to maximize employee performance in service of an employer's strategic objectives. Human resource management is primarily concerned with the management of people within organizations, focusing on policies and systems. HR departments are responsible for overseeing employee-benefits design, employee recruitment, training and development, performance appraisal, and reward management, such as managing pay and employee benefits systems. HR also concerns itself with organizational change and industrial relations, or the balancing of organizational practices with requirements arising from collective bargaining and governmental laws.

In finance, assets under management (AUM), sometimes called fund under management, measures the total market value of all the financial assets which an individual or financial institution—such as a mutual fund, venture capital firm, or depository institution—or a decentralized network protocol controls, typically on behalf of a client. Funds may be managed for clients, platform users, or solely for themselves, such as in the case of a financial institution which has mutual funds or holds its own venture capital. The definition and formula for calculating AUM may differ from one entity to another.

Oracle Applications comprise the applications software or business software of the Oracle Corporation both in the cloud and on-premises. The term refers to the non-database and non-middleware parts. The suite of applications includes enterprise resource planning, enterprise performance management, supply chain & manufacturing, human capital management, and advertising and customer experience.

Workforce management (WFM) is an institutional process that maximizes performance levels and competency for an organization. The process includes all the activities needed to maintain a productive workforce, such as field service management, human resource management, performance and training management, data collection, recruiting, budgeting, forecasting, scheduling and analytics.

Intellectual capital is the sum of all knowledge; implying that knowledge that exists at different levels both within or outside the organisation has to be taken into account for intellectual capital. The intangible nature of many knowledge products and processes, in combination with the increasing importance of their value in corporate balance sheets leads to a growing interest in management of intellectual capital. Creating, shaping and updating the stock of intellectual capital requires the formulation of a strategic vision, which blends together all three dimensions of intellectual capital within the organisational context through exploration and exploitation, measurement and disclosure. Therefore, the organisational value of intellectual capital is developed via an ongoing and emergent process focused on the capability to leverage, develop and change the dimensions. The management of intellectual capital is conceptualised as occurring via a multiple stage process, governed by an evolutionary logic. The intellectual capital management is defined as a cycle of four inter-related sets of practices: Strategic Alignment, Exploration and Exploitation, Measurement and Reporting of intellectual capitals.

Competence is the set of demonstrable characteristics and skills that enable and improve the efficiency or performance of a job. Competency is a series of knowledge, abilities, skills, experiences and behaviors, which leads to effective performance in an individual's activities. Competency is measurable and can be developed through training.

The following outline is provided as an overview of and topical guide to business management:

Asset management is a systematic approach to the governance and realization of all value for which a group or entity is responsible. It may apply both to tangible assets and to intangible assets. Asset management is a systematic process of developing, operating, maintaining, upgrading, and disposing of assets in the most cost-effective manner.

A chief human resources officer (CHRO) or chief people officer (CPO) is a corporate officer who oversees all aspects of human resource management and industrial relations policies, practices and operations for an organization. Similar job titles include: chief people officer, chief personnel officer, executive vice president of human resources and senior vice president of human resources. Roles and responsibilities of a typical CHRO can be categorized as follows: workforce strategist, organizational and performance conductor, HR service delivery owner, compliance and governance regulator, and coach and adviser to the senior leadership team and the board of directors. CHROs may also be involved in board member selection and orientation, executive compensation, and succession planning. In addition, functions such as communications, facilities, public relations and related areas may fall within the scope of the CHRO role. Increasingly, CHROs report directly to chief executive officers and are members of the most senior-level committees of a company.

Talent management (TM) is the anticipation of required human capital for an organization and the planning to meet those needs. The field has been growing in significance and gaining interest among practitioners as well as in the scholarly debate over the past 10 years, particularly after McKinsey's 1997 research and the 2001 book on The War for Talent. Michaels, Ed; Handfield-Jones, Helen; Axelrod, Beth (2001). The War for Talent. Harvard Business Press. ISBN 9781578514595. Talent management in this context does not refer to the management of entertainers. Talent management is the science of using strategic human resource planning to improve business value and to make it possible for companies and organizations to reach their goals. Everything done to recruit, retain, develop, reward and make people perform forms a part of talent management as well as strategic workforce planning. A talent-management strategy should link to business strategy and to local context to function more appropriately

Capability management is the approach to the management of an organization, typically a business organization or firm, based on the "theory of the firm" as a collection of capabilities that may be exercised to earn revenues in the marketplace and compete with other firms in the industry. Capability management seeks to manage the stock of capabilities within the firm to ensure its position in the industry and its ongoing profitability and survival.

Human resource planning is a process that identifies current and future human resources needs for an organization to achieve its goals. Human resource planning should serve as a link between human resource management and the overall strategic plan of an organization. Ageing workers population in most western countries and growing demands for qualified workers in developing economies have underscored the importance of effective human resource planning.

Human Resource (HR) metrics are measurements used to determine the value and effectiveness of HR initiatives, typically including such areas as turnover, training, return on human capital, costs of labor, and expenses per employee.

A human resources management system (HRMS) or Human Resources Information System (HRIS) or Human Capital Management (HCM) is a form of Human Resources (HR) software that combines a number of systems and processes to ensure the easy management of human resources, business processes and data. Human resources software is used by businesses to combine a number of necessary HR functions, such as storing employee data, managing payroll, recruitment, benefits administration, time and attendance, employee performance management, and tracking competency and training records.

<span class="mw-page-title-main">Paula Caligiuri</span> Psychologist, author

Paula Caligiuri is an American academic, talent management specialist, psychologist, book author, and entrepreneur. As a Distinguished Professor of international business and strategy, she is on the faculty at D'Amore-McKim School of Business, Northeastern University. Her published contributions in the field of international human resource management have won academic distinctions, and been endorsed in scholarly literature and in wider professional circles. Among her books, Get a Life, Not a Job, Managing the Global Workforce,Cultural Agility: Building a Pipeline of Successful Global Professionals, and Build Your Cultural Agility: The Nine Competencies of Successful Global Professionals, received attention by qualified media. In 2023, she wrote Live for a Living: How to Create your Career Journey to Work Happier, Not Harder with Andrew Palmer (Technologist), which focuses on career development. She is ranked # 392 among the best business and management scientists in the US, 810 worldwide.

References

  1. ↑ Mayo, Andrew (2001). The human value of the enterprise : managing the metrics of people as assets (Reprint. ed.). London: Nicholas Brealey. ISBN   1857882814.
  2. ↑ "Performance Management". OPM.gov. Retrieved 15 May 2015.
  3. ↑ Boynton, Andy; Bole, Bill Fischer with William (2011). The idea hunter : how to find the best ideas and make them happen (1st ed.). San Francisco, CA: Jossey-Bass. ISBN   978-0470767764.
  4. ↑ The Innovator's DNA. Brilliance Audio. 2014. ISBN   978-1491513897.
  5. ↑ Larsen, Pia Bramming og Henrik Holt (1995). Kompetenceudvikling : en nøgle til konkurrenceevne? (1. udgave, 1. oplag. ed.). Kbh.: Dansk Management Forum. ISBN   8787606208.
  6. ↑ Johnson, Mike (1999). Winning the people wars : talent and the battle for human capital. London: Financial Times Management. ISBN   0273641972.
  7. ↑ Quelch, John A.; Jocz, Katherine E. (2012). All business is local : why place matters more than ever in a global, virtual world. New York: Portfolio/Penguin. ISBN   978-1591844655.
  8. ↑ Mayo, Andrew (2001). The human value of the enterprise : managing the metrics of people as assets (Reprint. ed.). London: Nicholas Brealey. ISBN   1857882814.
  9. ↑ Mayo, Andrew (2001). The human value of the enterprise : managing the metrics of people as assets (Reprint. ed.). London: Nicholas Brealey. p.  79. ISBN   1857882814.
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