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Developing an OD‐intervention metric system with the use of applied theory‐building methodology: A work/life‐intervention example
Author(s) -
Morris Michael Lane,
StorbergWalker Julia,
McMillan Heather S.
Publication year - 2009
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.20026
Subject(s) - psychological intervention , return on investment , human resources , metric (unit) , intervention (counseling) , human capital , work (physics) , investment (military) , knowledge management , computer science , management science , operations management , psychology , economics , management , engineering , microeconomics , economic growth , political science , mechanical engineering , psychiatry , production (economics) , politics , law
Abstract This article presents a new model, generated through applied theory‐building research methods, that helps human resource development (HRD) practitioners evaluate the return on investment (ROI) of organization development (OD) interventions. This model, called organization development human‐capital accounting system (ODHCAS), identifies return‐on‐investment measures for each of the elements of the human‐capital employment life cycle that are impacted by OD interventions. We illustrate an application of the new model by using work/life (w/l) interventions as a test of the model. The contribution of this new model is fourfold: 1. It fills a gap in the literature by suggesting a holistic ROI framework for typically nonfinancial OD‐type interventions. 2. It is generated from an accepted applied theory‐building methodology. 3. It offers decision makers methods to develop “hard” evidence on which to evaluate w/l interventions. 4. It has the future potential to be expanded and used to evaluate the ROI for multiple types of OD interventions.