Section One
This section begins with consideration of factors relevant
to strategy-based human resource investment decisions.
Factors to be discussed include the organization’s managerial
values, risk and return trade-offs, the economic rationale for
investments in training, the investment analysis approach of
utility theory, and outsourcing as an alternative to investments
in human resources. Following the discussion of these factors,
specific investments in strategy-related training and devel-
opment will be considered. This discussion will include
investments in the future “employability” of employees, current
practices in training investment, on-the-job training,
management development, prevention of skill obsolescence,
and reductions in career plateauing.
Practices for investing in improved retention and reduced
turnover will be discussed, beginning with an examination of
organizational cultures that emphasize interpersonal
relationship values. This will be followed by discussions of
effective selection procedures, compensation and benefits, job
enrichment and job satisfaction, practices providing work life
balance, organizational direction, and other practices that
facilitate retention. Next, there will be a discussion of the costs
of downsizing and layoffs. This will be followed by a discussion
of how to avoid business cycle–based layoffs, alternatives to
layoffs, and employment guarantees. There will also be a
discussion of the relationship between job insecurity and work