Human Resources Portfolio Theory Is a Venture Essay

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Human Resources

Portfolio theory is a venture advance that permits investors to approximate both the expected risks and returns, as calculated statistically, for their investment portfolios (Investment Portfolio Management and Portfolio Theory, 2011). This is a very good technique that those in the investment field use in order to get the most out of their investments. This technique can also be used in the human resources arena in order for a company to get the most return on their employees.

HR professionals in today's business world act as a partners with line management in order to resolve vital issues and add optimistically to the organizations bottom line. This HR-business unit partnership guarantees that HR goals are in line with the companies' general plan. The position of the human part of the company and its strategic goals makes sure that the company sustains its competitive edge by dealing with key matters such as time-to-market and efficiency. A sure thing in today's business culture is change. With change comes an augment in risk. It is vital that today's HR administrators have a consciousness and appreciation of these risks.

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This appreciation can improve their company's efficiencies by proactively working to steer clear of and prepare for these risks. HR administrators are more and more partnering their skills with those of their peers in the Risk Management profession. There are human resources and social matters occupied every commerce undertaking from the little local company to the restructuring of a global company (Frederickson, n.d.).

Companies invest a lot of time and money in hiring and training workers. In order to increase the bottom line it is important that companies get the best return on investment for what is expended out. It is this concept that makes human capital an important one for businesses to focus on when planning their human resources functions.

Those who criticize the concept of human capital are those who fail to see all the things that the term truly encompasses. The notion of….....

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