Value of Employees and Human Ressource Management

Essay from the year 2004 in the subject Leadership and Human Resources - Miscellaneous, grade: 1,7, Saarland University, language: English, abstract: This paper was generated with international help and contribution and will provide a thought-provoking impulse for the examination of the employees and their worthiness for company value. Accordingly we will consider the impacts of the increasing interest in human capital in the expanding knowledge and information society and the ensuing demand for quantifying intangibles, including some approaches and critical questions How does it come that a firm is going to be sold at a prize higher than its listed book accounting value? The cause for this phenomenon is due to the fact that the prevalent standards for the evaluation of the company are nearly almost referred to finance and real capital, intangibles are mostly discounted or incomplete. Even the inclusion of intangible assets like brand, image, customer and supplier relationships counts not for the total value because the surplus caused by the worker s skills is disregarded. The reason therefore is potentially up to the fact that the current approaches itemized in literature lack of suitability for daily use. This will however change in the near future, given that the issue of human capital valuation is taken more and more serious from the part of the company itself as well as from analysts and media. Precisely in present times of a knowledge society human capital is gaining in value since the company s success is in the long run contingent on the performance of its employees. This becomes apparent by considering the proportion of information processing and switching services which increased by some 30% in the last three decades.