Human Capital Management

HumRRO has over 50 years of experience in human resources research and consulting. Today, HumRRO is using this wealth of experience to help organizations with human capital planning and management. In this work, HumRRO has found it useful to use a six-step model to help organizations think about the activities involved in human capital planning and management.

In Step 1, the organization needs to align its human resources strategy to its organizational strategy. Aligning them means that choices about human resource processes and priorities are made based on the organization's mission and objectives, while taking into account the realities of internal (e.g., current technology, organizational culture) and external (e.g., global economic trends, labor market supply) conditions. HumRRO is currently assisting the Smithsonian Institution in its effort to align and prioritize its human capital strategy on the basis of its overall strategy.

Step 2 involves the use of measurement techniques in which HumRRO has considerable expertise and experience. Workforce analysis starts with determining the size and characteristics of the current workforce. HumRRO uses factors such as employee age, tenure, and separation patterns to project how a workforce will change over time. This helps an organization understand its internal labor supply. Another aspect of labor supply is the current competency makeup of the workforce. What knowledge, skills, abilities and characteristics does the current workforce have? What can the organization expect to have in future years?

On the demand side of the equation, HumRRO helps organizations identify their workforce needs based on their strategic direction. For example, HumRRO worked with the U.S. Army to develop and examine future scenarios and conduct future-oriented job analysis to identify the competencies Soldiers and Noncommissioned Officers will need as the 21st Century progresses.

In Step 3, HumRRO helps organizations compare their labor supply and needs to identify critical gaps. For example, HumRRO used survey methodology to help the Federal Motor Carrier Safety Administration measure its competency demands and supply and conduct a competency gap analysis to identify its needs and priorities.

Step 4 uses the information acquired in Steps 1 through 3 to develop plans to fill the gaps and manage human capital consistent with the organization's strategy. For example, an organization going through deregulation may find it has critical leadership gaps in the areas of marketing, sales, and finance as the nature of its business changes. Plans to fill those gaps might include leadership training and development experiences. The organization change the ways it appraises its leaders' performance and allocates rewards because current systems are not consistent with the shifting organizational strategy and new expectations for leaders.

Step 5 involves turning the new plans into realities. Leaders who support needed changes through their messages and actions and the use of communication methods that are effective for the particular organization are essential. This step includes training on new skills, leadership development experiences, surveys to get employee reactions, or workshops to get personnel involved. For example, HumRRO has worked with bureaus in the Department of Homeland Security to develop a monthly 'Toolbox for Leadership Development' to provide information to supervisors and managers in the field, who are often too busy to attend off-site classroom training.

Step 6 recognizes that the development and implementation plans is not enough to result in success. Evaluation is needed to examine whether plans were consistent with organizational objectives, implemented as intended, and resulted in the outcomes desired. Evaluation is necessary even after systems have become institutionalized to ensure continued success and relevance in an ever-changing organization and environment.

For more information, contact:
Dr. Gina Medsker or Research Notes