The Effects of Investments In Human Resource Practices: Challenges And Practices

Abstract

This study examine the link between the growth of human quality and the efficiency of investment. Employee quality is assumed to be increased by the use of openly or implicitly costly human resource processes, which in turn boost investment efficiency. Our findings, based on a large sample of US businesses from 2002 to 2016, indicate that human resource practices are negatively associated with investment efficiency, resulting in both over-and under-investment. The effects are more obvious when we focus on human resource operations with larger monetary direct costs as well as non-capital expenditures. It seems as if agency aims are driving staff development programmes, and that such expenditure ultimately fails to match worker and shareholder interests. Additionally, the research substantiates the notion that investments in human resource procedures are viewed as highly unpredictable by outsiders, which has a detrimental effect on capital supply.