Although most organizations realize the importance of this asset, some have not put into place the infrastructure components required to manage people in the same manner in which other assets are managed. Financial, capital, and information resources, for example, are managed with careful planning, monitoring, replacement, or upgrading. Often the same cannot be said for how an organization's Human Resources are managed.
In order to manage and nurture Human Resources, planning is required to establish a framework in which this valuable asset will be employed. This includes identification of objectives, values, principles, and practices to guide the organization in its use of people. Within this framework the infrastructure components to give managers the skills and guidelines to apply sound management principles and practices are developed.
The infrastructure is made up of a broad framework and includes such
support mechanisms as organization, performance management processes,
rewards and incentives, recruitment standards, and Human Resource development
principles. These in turn are supported by subsystems which include
specific policies and procedures such as recruitment procedures, compensation
policies, performance appraisal, training and development policies,
legislative compliance, communications devices, and the like.