Human Capital Engineering (More Than an Annual Performance Review)


By:  Murray Brookman

As manager or supervisor, one of your major goals is to develop the capacity of your employees to perform. Human Capital Engineering (the new phrase for Performance Management) is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Human Capital Engineering is a complete work system that begins when a job is first defined, and ends when an employee leaves your organization. Many people incorrectly use the term “Performance Management” as a substitution for the traditional appraisal system when it in fact refers to this broader work system.  

Human Capital Engineering system includes at least the following actions:

  • Develop a clear job description that identifies and defines the competencies necessary to perform a job effectively

  •  Select appropriate people with an appropriate selection process

  •  Negotiate requirements and accomplishment-based performance standards, outcomes and measures

  •  Provide effective orientation, education and training

  •  Provide on-going coaching and feedback

  •  Conduct periodic and regular performance development discussions (i.e. quarterly)

  •  Design effective compensation/recognition systems that reward people for their contributions

  •  Provide promotional/career development opportunities for staff

  •  Identify future organizational needs and corresponding development and succession plans

  •  Conduct exit interviews to understand why valued employees leave the organization


Human Capital Engineering can therefore be thought of as a continuous cycle:

  1. Performance planning where goals, objectives and expectations are established

  2. Performance training where needed information and skills are transferred

  3. Performance delegation where work assignments are made

  4. Performance coaching/counseling/progressive discipline where a manager intervenes to give feedback and adjust performance

  5. Performance appraisal where individual performance is formally documented and feedback delivered

In today’s fast-changing economy, human capital has become a key source of competitive advantage. A comprehensive Human Capital Engineering process can help your organization select, direct, assess and develop your people so that you can achieve your bottom line goals and maximize your human capital advantage.

The Human Capital Engineering process will align the strategic objectives of your organization with your key HR business processes. You can use this information to:

  • Perform individual and organizational analysis

  • Reduce education costs

  • Improve hiring practices

  • Improve retention

  • Improve your human resources performance and developmental planning processes

  • Deploy your human capital more effectively, and

  • Help management make strategic decisions regarding readiness to take on more or new projects

By: Murray Brookman

© 2015 Alliance Training and Consulting, Inc.



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