Enhancing Return on HR Investment : Risk Management with Real Options Approach

Extending the concept of real options, the research considers HR as a strategic asset and emphasizes certain HRM practices as creating HR options in terms of reducing uncertainties related to returns, volume and combinations and costs. HR option is in fact real option, since it allows the organizations to pay smaller price for the adjustment. There is a premium associated for creating these HR options as many of these HRM practices involve additional investments on HR