Human Capital Investment And ROI Evaluation On Its Impact Of Organizational Performance

At present, a new economic era taking networking, informationization, digitalization, knowledgeization as characteristic is coming up to mankind. Human capital will become the source of the new economic growth and the fundamental drive. The enterprise competition is the talent's competition in fact. The human capital investment of the enterprise has extremely important function in raising the stock of enterprise human capital and enterprise competitiveness. The relationship between human capital investment and organizational performance becomes the focus that people pay close attention. Although man has made many works in the field, the research that evaluates the return on investment of the performance of human capital investment is still rare, where is this thesis starts.The topic of this thesis is human capital investment and its ROI performance evaluation. It is based on literature review combined with the existing achievements concerning performance of human capital investment of the enterprise in China and abroad, absorbing adequately the research achievements of Human Capital Theory, Organizational Performance Theory and the benefit research theory of HRM, ROI's financial analysis, and using some specific methods including normative analysis, logic analysis and historical analysis, qualitative analysis and case analysis, and so on. The purpose is trying to make the ROI model for evaluating enterprises' human capital investment systematically.There are four chapters in the thesis except the introduction and conclusion:The introduction mainly states that the theme and purpose of the research, briefs the approaches and summarize the innovations.Chapter 1, Literature review, which mainly summarizes the original ideas, theory and the present development about human capital and performance evaluation on human capital investment, is the basis of the research.Chapter 2, Outline the relationship between human capital investment and organizational performance in enterprises. This part states the meaning and the characteristics of human capital investment as well as enterprises' human capital investment, and further discuss the purpose and the way of enterprises' human capital investment, point out the reason why it is very difficult to evaluate the performance., and then probe into their relationship, roughly analyze the factors that influence investment performance, mainly including internal and external circumstance, enterprises' characteristic etc..Chapter 3, Performance evaluation on enterprises' human capital investment, is the body of the thesis too. This chapter will make detailed discussion about the principle, the method of ROI.Chapter 4, The key explanation of model, includes how strip out performance of human capital investment, how measure the invisible index that describes and how improve the reliability of data.Furthermore, the research should be improved and developed. For example, the positive analysis based on the model should be made.