Toward a Human Capital Measurement Methodology

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Executive Summary

Measuring the impact of human capital and investments made in it has been an ongoing challenge for the field of human resource development (HRD).This study reports on an intensively researched, rigorous measurement methodologies designed to address this challenge. This paper presents the process by which the methodology was developed, from foundational economic logic to analysis and validation. The resulting Human Capital Capability Scorecard approach allows organizations to comprehensively measure 69 different human capital items and link them to organizational performance. The implications for HRD theory building and related public policy issues are also discussed.

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