As an Amazon Associate I earn from qualifying purchases.

What is Return on Investment (ROI) in HRM? PDF Download

Learn Return on Investment (ROI) definition in hrm with explanation to study “What is Return on Investment (ROI)”. Study return on investment (roi) explanation with HRM terms to review HRM course for online MBA programs.

Return on Investment (ROI) Definition

  • Calculation showing the value of expenditures for HR activities.

    Human Resource Management by Robert L. Mathis, John H. Jackson



Return on Investment (ROI) Explanation

Return on investment (ROI) is a proportion between net benefit (over a period) and cost of speculation (coming about because of a venture of certain assets at a point in time). A high ROI implies the speculation's increases contrast positively with its expense. As a presentation measure, ROI is utilized to assess the proficiency of a venture or to analyze the efficiencies of a few distinct speculations. In financial terms, it is one method for relating benefits to capital contributed. In business, the reason for the arrival on speculation (ROI) metric is to gauge, per period, paces of profit for cash put resources into a financial element so as to choose whether or not to attempt a venture. It is additionally utilized as a pointer to analyze various ventures inside a portfolio. The venture with the biggest ROI is typically organized, despite the fact that the spread of ROI over the timeframe of a speculation ought to likewise be considered.

Keep Learning HRM Explanations

What is Job Satisfaction?

Job Satisfaction, as the name proposes, is the inclination of happiness or a feeling of achievement, which a worker gets ...

What is Organization Centered Career Planning?

Organization centered career planning arranging basically centers around the employments and includes chalking out vocation plans dependent on the coherent ...

What is Cash Balance Plan?

A cash balancen plan is a bend on the customary benefits plan. Like a conventional benefits, a money offset plan ...

What is Non-Compete Agreements?

A non-compete agreement is an agreement wherein a representative vows not to go into rivalry of any sort with a ...

What is Distributive Justice?

Distributive equity concerns the socially only designation of merchandise. Regularly stood out from simply process, which is worried about the ...

What is Health Maintenance Organization (HMO)?

A person that necessities to verify their own medical coverage plan may discover an assortment of medical coverage suppliers with ...