Abstract
Orientation: The management context is dynamic; this is especially evident in human capital as the primary source of value creation as opposed to physical and natural resources. In response, measurement methodologies have moved from a transactional approach (strategy implementation) to a transformational approach (human capital contribution paradigm), as well as diverging into different purposes. To date, there has been little overlap on recent domains to consider in managing and measuring the contribution of the human resource function and employees, and how to unlock and add value.Research purpose: The aim of the study was to explore and describe changing domains within human capital management to be managed and measured.Motivation for the study: The motivation was to advance the understanding of changing measurement domains to aid practitioners to manage and measure the contribution of the human resource function and employees, in order to unlock and add value and ultimately contribute to the success of an organisation.Research design, approach and method: Unstructured, in-depth interview data of purposively selected cases from a selected panel of human resource practitioners specialising in human capital measurement was thematically analysed in this exploratory-descriptive investigation.Main findings: Findings suggested that seven domains should be managed and measured. These domains highlight new areas of impact and levels of management. In addition, crossdomain relationships in measurement allow for an understanding of the impact and potential value on which to capitalise.Practical/managerial implications: New domains to manage and measure focus the attention of practitioners beyond the transactional performance management paradigm to a transformational approach to influence the business strategy. Higher education institutions need to develop students’ cognitive skills to facilitate systems thinking.Contribution: This study suggests a new approach to managing and measuring the human capital function and the workforce.
Highlights
Measurement frameworks for the measurement of human resource (HR) and human capital are in transition. (For clarity, the term human capital is employed where HR denotes management practices to manage human capital, the latter signifying a collective of unique attributes of employees or the workforce.) This transition is due to the fact that contemporary frameworks have different purposes and no longer reflect the Balanced Scorecard’s (Kaplan & Norton, 1996) perspectives and subsequent developments
Domain 2: Human resource function delivery excellence (35). This domain considers the functioning of two elements, namely the HR function and HR professionals, alongside the HR value chain
The main contribution of this study is to describe changing domains in the management and measurement of the HR function and human capital
Summary
Measurement frameworks for the measurement of human resource (HR) and human capital are in transition. (For clarity, the term human capital is employed where HR denotes management practices to manage human capital, the latter signifying a collective of unique attributes of employees or the workforce.) This transition is due to the fact that contemporary frameworks have different purposes and no longer reflect the Balanced Scorecard’s (Kaplan & Norton, 1996) perspectives and subsequent developments. (For clarity, the term human capital is employed where HR denotes management practices to manage human capital, the latter signifying a collective of unique attributes of employees or the workforce.) This transition is due to the fact that contemporary frameworks have different purposes and no longer reflect the Balanced Scorecard’s (Kaplan & Norton, 1996) perspectives and subsequent developments. These transitions echo Becker, Huselid and Ulrich’s (2001) observation 12 years ago that: there is little consensus, ...
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