Importance of Human Capital
The idea that employees’ skills, knowledge, and abilities are an organization’s most valuable asset.
What is human capital?
This HR function involves attracting and selecting qualified candidates for positions.
What is recruitment and selection?
A career system based on merit and competence rather than political loyalty.
What is the merit system?
In nonprofits, employees are often motivated by this factor more than by salary or benefits.
What is organizational mission or sense of purpose?
Investing in employee training and education improves this key organizational outcome.
What is productivity?
This process evaluates how well employees meet job standards.
What is performance appraisal?
The act that professionalized the U.S. civil service after widespread patronage and corruption in the 19th century.
What is the Pendleton Act of 1883?
Because many nonprofits have limited budgets, they often rely on these contributors alongside paid staff.
Who are volunteers?
Governments rely on human capital to deliver these to the public effectively and fairly.
What are public services?
Providing opportunities for employees to improve skills and knowledge is part of this HR function.
What is training and development?
The opposite of the merit system, where jobs were given for political reasons.
What is the spoils system?
Nonprofit HR managers must balance limited resources with the need to attract and keep skilled workers, often through this non-financial strategy.
What is recognition or professional development?
When organizations fail to value their workers, this often decreases among employees.
What is motivation?
Ensuring fair pay, benefits, and safe working conditions falls under this HR function.
What is employee welfare or labor relations?
The principle that civil servants remain in office regardless of which political party is in power.
What is political neutrality?
HR in nonprofits must ensure that both staff and volunteers follow ethical standards to maintain this essential resource.
What is public trust or donor confidence?
Strategic management of people to achieve long-term goals describes this modern approach to personnel management.
What is strategic human resource management?
This HR activity involves planning for future leadership by identifying and preparing capable employees.
What is succession planning?
This practice promotes accountability and professionalism by requiring exams or evaluations before hiring.
What is competitive examination or civil service testing?
Compared with public agencies, nonprofit HR systems tend to be less formal and more flexible in this key area of personnel management.
What is recruitment and hiring?