The new CEO of the firm has told the vice president of HR that all HR activities must use the cost of capital as the benchmark against which their the returns from the activities are measured.The new CEO is implementing

Question

Quizplus · Accepted Answer

The use of cost of capital as the benchmark for measuring returns from HR activities is a characteristic of the Human Economic Value Added (HEVA) approach, which is a form of measuring ROI in HR. The balanced scorecard is a broader performance management framework that includes financial and non-financial measures. Return on Investment (ROI) and Return on Assets (ROA) both involve measuring financial returns against the costs incurred, but they do not specifically use cost of capital as the benchmark.

The New CEO of the Firm Has Told the Vice