The strategic financial evaluation of human resources development programs by South African firms

[摘要] Human resources development plays an important role in the firm byimproving productivity, and hence the competitive advantage of thefirm. The strategic evaluation of human resources developmentprograms is also important, in that such programs commit a firm'sfinancial resources for a long period with uncertain results.In this study, a method is developed to strategically evaluate humanresources development programs. The evaluation method is basedon the capital budgeting process. Capital budgeting techniques are acommon methods of evaluating long term investments in firms.This study is divided into two main sections. Firstly, a literature studyof the subject of human resources development and capital budgetingis undertaken. Based on this study, elements to include in thestrategic financial evaluation method are established.Secondly, an empirical study is conducted to determine whetherSouth African firms can use the proposed method to financiallyevaluate human resources development programs. Using theproposed method as a basis, a questionnaire was determined andtested. The questionnaire was applied to a sample of South Africancompanies, after which the results were reported. Descriptivestatistics as well as advanced statistics indicated the following:- South African firms do financially evaluate human resourcesdevelopment programs.- South African firms can use the proposed method tofinancially evaluate human resources developmentprograms.In conclusion, recommendations on the strategic financial evaluationof human resources development programs by South African firms,are provided.

[发布机构] University of the Free State