1. INVESTMENT PERSPECTIVE OF HUMAN RESOURCE MANAGEMENT
SOURCES OF EMPLOYEES VALUE
1. TECHNICAL KNOWLEDGE
MARKET
CUSTOMER
PROCESS
ENVIRONMENT
2. ABILITY TO LEARN AND GROW
OPENNESS TO IDEA
ACQUISITION OF KNOWLEDGE AND SKILL
3. DECISION MAKING CAPABILITIES
4. MOTIVATION
5. COMMITMENT
6. TEAMWORK
INTERPERSONAL SKILLS
LEADERSHIP ABILITY
HR VALUE CHAIN
EMPLOYEES OUTCOME: ATTITUDES, BEHAVIOR
ORGANIZATIONAL OUTCOME: QUALITY, PRODUCTIVITY
FINANCAIL OUTCOMES: EXPENSES, REVENUE AND PROFIT
MARKET OUTCOME: STOCK PRICE

2. FACTOR INFLUENCING INVESTMENT PERSPECTIVE IN HRM
1. MANAGEMENT VALUE
SENIOR MANAGEMENT VALUES AND ACTIONS DETERMINE ORGANIZATIONAL INVESTMENT IN ASSETS.
IT IS CRITICAL TO UNDERSTAND HOW THE ORGANIZATIONAL STRATEGY MANDATES THE INVESTMENT
IN PARTICULAR ASSETS RELATIVE TO OTHERS. WHETHER MANAGEMENT VALUES IT PEOPLE IS A
CRITICAL FACTOE IN ITS WILLINGNESS TO INVEST IN THEM.
2. ATTITUDE TOWARD RISK
HIGHER RISK INVESTMENT ARE GENERALLY EXPECTED TO HAVE HIGHER RETURN, LOWER RISK OR SAFER
INVESTMENT ARE GENERALLY TO ECPECTED TO HAVE MODEST RETURN. EXAMPLE BONDS ARE
CONSIDERED AS LESS RISKY INVESTMENT THAN STOCK BUT LIMITED, FIXED RETURN. STOCK ARE HIGH
RETURN.
3. NATURE OF EMPLOYEES SKILL
SOME ORGANIZATION REQUIRE THEIR EMPLOYEES TO DEVELOP WITH VERY SPECIALIZED SKILLS THAT
MIGHT NOT BE AVALIABLE IN ANOTHER ORGANIZATION. EXAMPLE IF THE EMPLOYEES HAVE
INFORMATION ON HOW TO CONTROL HR FUNCTION, THE SKILLS MAY NOT BE TRANSFER TO ANOTHER
EMPLOYEES. BUT IF THE EMPLOYEES USE POPULAR SOFWARE WHICH HAS HIGH DEMAND IN THE
MARKET, THE INVESTMENT IN EMPLOYEES BECOME RISKY.
4. UTILITARIANS
ORGANIZATION TAKE PERSPECTIVE EVALUATE INVESTMENT BY USING UTILITY ANALYSIS, ALSO KNOWN
AS COST BENEFIT ANALYSIS. THE COST OF INVESTMENT ARE WEIGHTED EITHER IT GIVE PROFIT OR
MORE COMMONLY ACHIEVE THE TARGET ONLY. ONE EXAMPLE IS THE COST OF HAVING A LARGE
APPLICANT POOL.
5. AVAILABILITY OF OUTSOURCING
IT IS THE WILLINGNESS OF THE ORGANIZATION IN INVESTING ON THE EMPLOYEE. THE RESULTS IS TO
DETERMINE EITHER IT WILL PRODUCE A SUSTAINABLE COOMPETITIVE ADVANTAGE OVER TIME. WHEN
A SPECIALIST WHO EXISTED OUTSIDE THE ORGANIZATION IT WILL CHALLENGED INTERNAL
MANAGEMENT. EXAMPLE OF ORGANIZATIONAL FUNCTION ARE CUSTOMER SERVICES, ACCOUNTING,
MANUFACTURING AND HUMAN RESOURCE MANAGEMENT FUNCTIONS.
EXAMPLES MCDONALD INVEST LITTLE IN THEIR EMPLOYEES BY PROVIDE LITTLE TRAINING, PAY LOW
SALARY, EXPECT HIGH TURNOVER BECAUSE SUPPLY OF WORKER IS EXCESSIVE RELATIVE TO DEMAND.
THEY TEND TO INVEST MUCH ON NEW PRODUCT DEVELOPMENT, PHYSICAL EXPANSION, AND
MARKETING THROUGH COMPETITVE ADVERTISING.