Human Capital


Subject: Inspector General FLRA Human Capital Progress Assessment
Follow-up on FY 2000 Internal Review of FLRA Human Capital
Background: The actual foundation for human capital was developed in 1993 by the
National Performance Review (National Partnership for Reinventing Government). The
concept reflecting that human capital resources were an asset vice a cost occurred when
Congress passed the Government Performance and Results Act. Congress continued
passing legislation that integrated human capital investment strategies and performance
management (i.e. Federal Acquisition Streamlining Act, Clinger-Cohen Act, Government
Information Security Act, Government Performance Results Act, etc.) because human
resources are the most essential resource for accomplishing Federal Agency=s mission.
Congress has always recognized that human resources are the most important asset of the
Federal Government. As the Federal government strives to change it=s structures and
emphasize its focus on customer service, performance based budgeting, delayering
management positions to be replaced with working level positions, learning that Agency=s
can do more with less if they attract, hire, and retain skilled employees with broad based
knowledge and appropriate behavioral qualities, the management of human capital
investments becomes even more important.
Human capital may be the most difficult government

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