【正文】 ees do and must play. ? Programs that build employee mitment can bring great returns. Data from this and other Watson Wyatt studies clearly demonstrate that both individual and anizational performance increase when employees are mitted to their panies. Ensuring that anizational levers that build employee mitment are in place and working will affect the bottom line. ? Training is important, but it is no substitute for good management. A large majority of the anizations participating in this study identified training and development as the driver of future corporate success. The highperforming panies identified it slightly more often than the others. 18 Market Capitalization of Talent Whereas at the start of the 1990s a pany39。The Value of HR This presentation provides summary results from key HR research done over the past fifteen years. Compiled by Darin Phillips 1 Shareholder Returns The five highest return to shareholders from 19721992 (Southwest Airlines Co. 21,775%, WalMart Stores, Inc. 19,897%, Tyson Foods, Inc. 18,118%, Circuit City Stores, Inc. 16,410%, and Plenum Publishing 15,689%) differentiated themselves from their petitors and the market only through the way they managed their people. – Pfeffer (1994). Competitive Advantage Through People, 1994. 2 Three HR Generations Functional HR departments (transaction, administration, and pliance cost centers who view employees as an overhead cost to be minimized) add value by preventing loss through policy enforcement Secondgeneration HR processes add value by removing barriers to performance (elements of strategic HR in a function that views employees as a leverageable asset) Thirdgeneration (strategic) HR systems (investment and ROI centers who align and improve strategicallyfocused employee performance) have integrated all best practices aligning them as a strategic system. High performance work systems include ?rigorous recruitment and selection procedures, performancecontingent incentive pensation systems, and management development and training activities linked to the needs of the business? (?which in turn, drive profits, growth, and ultimately market value?). – Becker, B., Huselid, M., Pickus, P. Spratt, M. (1997). HR as a Source of Shareholder Value: Research and Remendations. Human Resource Management, Spring 1997, Vol. 36, No. 1, pp. 3947. ( Becker, B., Huselid, M. Ulrich, D. (2023). Making HR a Strategic Asset. Working paper. State University of New York at Buffalo.) 3 What is 3rd Generation HR worth? Initial research on 740 panies? HR practices found that those with the most integrated high performance work systems (HPWS) had economically and statistically significantly higher levels of pany performance. One standard deviation of improvement on their bell curve of integrated HPWS was associated with changes in market value from $15,000 to $60,000 per employee. Employee productivity was calculated as the logarithm of sales per employee using gross rate of return on assets (GRATE), which is less sensitive to depreciation and other noncash transactions, and Tobin?s q, a futureoriented and riskadjusted capitalmarket measure of performance that reflects both current and anticipated profitability and often mirrors the price that the market will pay for intangible assets (goodwill). – Huselid, M. and Becker, B. (1995). High Performance Work Systems and Organizational Performance. Paper presented at the 1995 Academy of Management annual conference, Vancouver, . 4 3rd Generation: Followup Research… Further research that included three US surveys and the experience of more than 2,400 panies continued to show significant impact of systems that select, maintain, develop, and reinforce employee performance on both marketbased and accountingbased measures of pany performance (while statistically controlling for RD investment, industry market changes, capital improvements, sales growth trends, etc.). Moving from the 60th percentile of integrated HPWS to the 80th percentile improved market valuation by $20,000 per employee. This reflects both operational excellence and alignment with the pany?s strategy. When the elements are present, but not aligned with the pany strategy there is a 27% drop off in measured gains. – Huselid, M. and Becker, B. (1998). High Performance Work Systems, Intellectual Capital, and The Creation of Shareholder Wealth. Working paper. School of Management and Labor Relations, Rutgers University. 5 What is included in an HR HPWS? A valueadded HR function develops supporting policies, practices, and/or strategies that include: o A business strategy that relies on people as a source of petitive advantage and a management culture that embraces that belief o Strong CEO and line manager suppo