Credits:
Rajendran Muthuveloo is senior lecturer at the  Graduate School of Business, Universiti Sains Malaysia.  His areas of teaching and research specialisation include Corporate Strategy, Strategic Agility, Futuristic Business, Global Scenario Planning, and Human Capital Management.

Published: 
14 Mar 2017

Employee separation affects employees and management alike. Changing the separation process from reactive to proactive is a key element in managing this well

In today’s dynamic and competitive business environment, every investment in an organisation is required to be tangible in order to be measured effectively. In view of this, organisations are moving towards human capital development, whereby the organisation’s human capital is considered as an investment by the organisation. By looking at human capital from the point of view of investment, we can measure its effectiveness through determining the Return on Investment (ROI).  This is further indicated in the I-TOP Strategic Agility Model [1] supported by the Resource Based View theory.[2] The three main functions of human capital development comprise recruitment, retention, and separation. Many organisations spend money, effort and time on recruitment and retention, neglecting separation, as separation has always been considered a negative process that does not necessarily impact the organisation’s performance.

Read more: https://cmp.smu.edu.sg/amb/article/20170314/heart-count

Contact Info

Graduate School of Business, Universiti Sains Malaysia
11800 USM
Pulau Pinang
Malaysia
Tel: +604-6532794 Fax: +604-6532792 E-Mail: gsb@usm.my
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