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A systems approach to measuring return on investment for HRD interventions
Author(s) -
Wang Greg G.,
Dou Zhengxia,
Li Ning
Publication year - 2002
Publication title -
human resource development quarterly
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.756
H-Index - 65
eISSN - 1532-1096
pISSN - 1044-8004
DOI - 10.1002/hrdq.1024
Subject(s) - return on investment , human resources , investment (military) , psychological intervention , field (mathematics) , measure (data warehouse) , computer science , risk analysis (engineering) , psychology , business , management , economics , data mining , mathematics , production (economics) , psychiatry , politics , political science , pure mathematics , macroeconomics , law
This study contributes to the limited methodological literature on HRD program evaluation and measurement.The study explores an interdisciplinary approach for return on investment (ROI) measurementin human resource development (HRD) research and practices. On the basis of a comprehensive reviewand analysis of relevant studies in economics, industrial‐organizational psychology, financial control,and HRD fields, we developed a systems approach to quantitatively measure ROI for HRD programs. The ROI conceptfor HRD field was defined, and a theoretical systems framework was developed. The applicability of usingstatistical and mathematical operations to determine ROI and isolate non‐HRD program impacts isdiscussed. Application scenarios are presented to demonstrate the utility of the systems approach inreal‐world ROI measurement for HRD interventions.