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Investing in People: Financial Impact of Human Resource Initiatives by John W. Boudreau, Wayne F. Cascio

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Chapter 1. Making HR Measurement Strategic[*]

Decisions about talent, human capital, and organizational effectiveness are increasingly central to the strategic success of virtually all organizations, so it is surprising how often vital decisions about talent and how it is organized are addressed with only very limited measures or with faulty logic. Consider how well your organization could address the following questions or requests if your CEO were to pose them:

“I know that on any given day about 5 percent of our employees are absent. Yet, everyone seems to be able to cover for the absent employees, and the work seems to get done. Should we try to reduce this absence rate, and if we did, what would be the benefit to our organization?”

“Our total ...

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