Section One SUMMARY...............................................................
This section has discussed the factors that should be
considered in making strategic human resource investment
decisions and the specific investment approaches that are
available to help accomplish the strategic objectives of
organizations. Presentation of the investment considerations
began with a discussion of managerial values, followed by an
examination of the unique risk and return aspects of
investments in human resources. Next, the economic rationale
for investments in specific and general training was examined.
Utility theory was also examined as a means for deter-mining
returns on investments in human resources. Alternatives to
such investments, in the form of strategic outsourcing were
also discussed.
Specific human resource investments in training and
development were then considered, beginning with investments
in the future employability of employees. As noted, declines in
the viability of employment guarantees and no-layoff policies
have increased the importance of individual security through
the notion of future employability. In order to have the world-
class human resources needed to pursue strategic objectives,
organizations must provide employees with skills and devel-
opment they will need to be employable in the future. Training