The Human Valuation of the Enterprise

The Human Value of the Enterprise by Andrew Mayo Executive Summary People be often spoken of as assets moreover are loosely treated as costs, because we have no credible system of rules of valuing them. The problem is that in todays knowledge-based organizations set is compulsive more by state than by any other factor. There are five main approaches to building a measurement system for people, or human capital. The attempt to revalue people financially has not been successful; however, an index of value factors provides a necessary balance with seeing people as costs. Current best practice looks at connecting the value of people in terms of their characteristics (and the value they produce in two financial and nonfinancial terms) via measures of their engagement and motivation. Introduction Our people are our or so important asset. This frequent statement from chief executives is often stock with justifiable cynicism. The problem is that people within an organization do not always experience decisions and policies in their everyday ca-ca life that support such a belief. The accountant who erst described people to me (admittedly with a smile) as costs move ab extinct on legs is often closer to the reality of organisational experience.

The very term human resources reinforces this concept of people. Organizations that are compulsive by an often understandable drive for increased cogency and minimized costs see headcount as the comfortable target. There are many reasons for this. One is the domination of instruction by current targets for bottom line resultsâ€"often resulting in a very short-term mindset. Such single-mindedness is illogical because it is out of balance; the desired final outcomes are driven by satisfying other demands that generally get much slight attention. A powerful system of financial processes and targets dominates the life of close to managers. Measures of intangibles, such as employees capabilities or customers loyalty may exist, but they are... If you want to get a full essay, order it on our website: Ordercustompaper.com

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