Measuring HR success- HR metrics and business performance

Guest (2011) argues that we are still ‘searching for some answers to the perennial question of the linkage between HRM and business performance.
Ideally, HR professionals and other organizational leaders would be able to inform their decisions about policies and practices with sound theory developed through research, and they would be able to assess the effectiveness of their decisions using valid metrics.
Though we may not have all of the answers, how can HR leaders move forward with what we have? How can leaders use alternative ways of thinking about organisational performance and effectiveness, such as ‘human capital management (Armstrong, 2006) to enhance management approaches?
To prepare for this Key Concept Exercise: focuse on the article by Guest (2011) and the concept of human capital management (HCM) advanced by Armstrong (2006). Consider how ideas from some of your other readings this week might relate to the issues outlined in the article. •Find and read one or two other articles cited by Guest (2011) to further inform your thinking about the issues.

Sample Solution