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The Human Capital Edge: 21 People Management Practices Your Company Must Implement (Or Avoid) To Maximize Shareholder Value Hardcover – December 13, 2001

4.7 out of 5 stars 7 customer reviews

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Editorial Reviews

About the Author

Bruce N. Pfau, Ph.D., (New York, NY) and Ira T. Kay, Ph.D., (New York, NY) are senior executives of Watson Wyatt Worldwide, a world-leading human resources consulting firm. Dr. Pfau is Watson Wyatt's national practice director of organization assessment and performance. Dr. Kay is director of the U.S. compensation practice.

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Product Details

  • Hardcover: 332 pages
  • Publisher: McGraw-Hill; 1 edition (December 13, 2001)
  • Language: English
  • ISBN-10: 0071378839
  • ISBN-13: 978-0071378833
  • Product Dimensions: 6.1 x 1.3 x 8.9 inches
  • Shipping Weight: 1.7 pounds
  • Average Customer Review: 4.7 out of 5 stars  See all reviews (7 customer reviews)
  • Amazon Best Sellers Rank: #1,246,852 in Books (See Top 100 in Books)

Customer Reviews

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Top Customer Reviews

By A Customer on April 5, 2002
Format: Hardcover
This book makes a valuable contribution to the growing body of evidence that human resources practices have a positive influence on business results. It gives solid numbers showing the relationship between 21 human capital practices and market value. It also provides evidence that these practices are a leading indicator of value creation. That's great stuff!
Then things fall apart quickly. The reason is because the authors over-reach by offering their suggestions for implementing the HR practices they identify as creating market value. That scope is simply much too large for a book of this size, resulting in shallow solutions. As an example, the authors show that "linking rewards to performance" is associated with a nine percent higher market value. They then share all of nine pages on how to implement pay-for-performance systems. That's hardly adequate, given there are a multitude of full-length books on that subject alone.
Some vexing findings are given short shrift, like the counterintuitive results that training and 360 degree feedback actually reduce market value. The authors waffle on the findings by suggesting the negative impact can be explained simply because these programs typically are ineffective. That kind of logic doesn't work since executing the other HR practices poorly would also have a negative impact on value creation.
In sum, this book does an excellent job demonstrating the relationship between human capital practices and market value. However, if you need help implementing those practices, you should look elsewhere.
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Format: Hardcover
The Human Capital Edge provides both an interesting and thorough perspective on best practices in human resource management, but more importantly, it translates these principles into specific actions that managers can take to maximize shareholder value.
While it confirms many widely held managerial assumptions with rigorous support and analysis - it also pushes the envelope with new ideas that challenge conventional thinking.
I found this book to be both thought provoking and useful, and recommend it to other CEO's who are seeking to increase shareholder value through better management of their human capital.
Kenneth Traub
President and CEO
American Bank Note Holographics, Inc.
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By A Customer on February 18, 2002
Format: Hardcover
There are many books out there that describe why companies fail and many others that describe different human resource practices to attract and retain talent. What I liked most about this book is that Pfau and Kay provide, using anecdotes as well as statistical data, the bottom-line justification for good management and personnel practices. This book gives one lots of ideas as well as the arguments to convince other decision makers to try them -- and that is the hardest part in some organizations (like mine!)
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Format: Hardcover
Having been in human resources for 20 years, I can finally report, with confidence, HR's direct link to the bottom line. Too many executives still think it is "touchy-feely" and this fact-based information proves otherwise.
"The Human Capital Edge" shows the measurable value of implementing solid HR practices! Great stuff!!
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