Abstract

In this excerpt from his recently published book, The Human Equation: Building Profits by Putting People First, the author argues that many managers continue to overlook the extent to which the more effective management of people can improve firm economic performance. Firms that seek to produce enhanced economic performance through the management their human capital have adopted a number of common personnel practices. These include the provision of employment security, the selective hiring of new personnel, decentralized decision making, high compensation contingent on organizational performance, extensive training, minimal status distinctions and barriers, and the extensive sharing of financial and performance information throughout the firm.