Chapter 1: the strategic role of human resources. The 3 hr practises: y profit sharing y results oriented performance appraisal y employment security. Have strong relationships with important accounting measures on performance (return on assets, and return on equity) High-performance hr practises: y comprehensive employee recruitment and selection procedures y. Incentive compensation and performance management systems y extensive employee involvement and training. Have a positive relationship with turnover, productivity, and corporate financial performance (gross rate of return on capital) Hr management responsibilities and activities fall into two categories: Strategic: y hr is focuses on ensuring that the organization is staffed with the most effective human capital to achieve its strategic goals. y requires hr staff to be strategic partners and change agents y. Metrics: statistics used to measure activities and results. Today s measures need to reflect the quality of people and the effectiveness of hrm initiatives to build workforce capability.